UAE: Gold prices fall to lowest levels in over 3 weeks as market sell-off hits bullion
Gold prices fell on Monday to their lowest levels in more than three weeks, continuing their retreat amid a wider market sell-off, as investors dumped bullion to cover losses in other trades on fears of a global recession due to an escalating trade war.
In UAE, 24k opened at Dh365.75 per gram while 22K was selling at Dh338.50 per gram. Among the other variants, 21K and 18K opened at Dh324.75 and Dh278.25 per gram, respectively.
Spot gold was down 0.1% at $3,034.02 an ounce, as of 0537 GMT. Earlier in the session, bullion dropped more than 1% to its lowest point since March 13. U.S. gold futures rose 0.5% to $3,051.00.
Gold dropped more than 3 per cent on Friday, after US President Donald Trump's bigger-than-expected tariff measures rippled across global markets. China struck back with a slew of counter-measures including extra levies of 34 per cent on all US goods and export curbs on some rare earth metals.
"There's a lot of confusion and uncertainties in the markets about whether there is room for de-escalation ahead, given that tensions are at an extreme right now, with many still struggling to see any quick resolution for now," IG market strategist Yeap Jun Rong said.
The price drop in gold, usually a safe-haven asset during uncertain times, made dealers speculate that investors might be selling off bullion to realise profits and potentially cover losses or margin calls on other assets.
Global recession fears wiped out nearly $6 trillion in value from U.S. stocks last week and caused Japan's Nikkei share average to tumble nearly 9 per cent on Monday.
Meanwhile, China's central bank added gold to its reserves in March for the fifth straight month.
"Central banks are evidently still keen on adding gold to their reserves, which has been underpinnning support for the precious metals," KCM Trade chief market analyst Tim Waterer said, adding that gold will continue to remain a favoured asset for central banks.
"Such buying flows may serve to keep gold's upward trajectory intact."
Spot silver gained 2% to $30.13 an ounce, after marking its lowest level in nearly seven months.
Spot platinum advanced 1% to $926.09, palladium added nearly 1% to $919.50.
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