Gold prices fell to their lowest levels in over three weeks, driven by a market sell-off. Investors dumped bullion to cover losses in other trades amid fears of a global recession, triggered by escalating trade tensions.
In the UAE, 24K gold opened at Dh365.75 per gram, while 22K was priced at Dh338.50 per gram. 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, dipping over 1% earlier in the session to its lowest since March 13. U.S. gold futures rose 0.5% to $3,051.00. 
The price decline follows a 3% drop on Friday, after U.S. President Donald Trump’s unexpected tariff measures hit global markets, prompting retaliatory actions from China. IG market strategist Yeap Jun Rong stated that there is uncertainty about whether de-escalation is possible, with many investors struggling to see a quick resolution.
Despite the price drop, dealers speculate that investors may be selling gold to realize profits or cover margin calls on other assets. Fears of a global recession wiped out nearly $6 trillion from U.S. stocks, with Japan’s Nikkei index tumbling almost 9%.
However, central banks, including China’s, continue to add gold to their reserves, providing some support to prices. Tim Waterer, chief market analyst at KCM Trade, noted that gold will remain a favored asset for central banks, potentially keeping its upward trajectory intact.
Meanwhile, spot silver gained 2% to $30.13 an ounce, and spot platinum rose by 1% to $926.09. Palladium also added nearly 1%, reaching $919.50.
