Gold Prices In UAE Reach Lowest Level In Weeks Amid Broader Market Decline

Vijay Valecha, Finance360, April 8, 2025

Gold prices dropped to their lowest point in over three weeks on Monday, April 7, amid a broader market sell-off. Gold fell more than 2.46% on Friday as investors sold off bullion to cover their losses from a broader market meltdown, as an intensifying trade war sparked global recession concerns.

During market volatility, the price drop in the traditionally safe haven asset has led to speculation that investors might be selling off gold to realize profits, potentially covering losses or margin calls on other trades.

“China’s retaliatory measures against U.S. tariffs, including additional levies and export restrictions, have further fuelled market uncertainty. Adding to investor concerns, Federal Reserve Chairman Jerome Powell said tariffs increased the risk of higher inflation and slower growth, highlighting the difficult path ahead for policymakers at the U.S. central bank,” shared Vijay Valecha, Chief Investment Officer, Century Financial.

On the daily chart, gold is trading below the 9-day SMA at $3,025 and could see support at the psychological level of $3,000 and potential resistance could be seen at $3,055.

Gold prices in the UAE today are as follows:

24 Carat – AED365.75

22 Carat – AED338.50

21 Carat – AED324.75

18 Carat – AED278.25

Dollar Rises Following Strong Jobs Report, But Declines in Early Trading

The US dollar gained nearly 1% after a stronger-than-expected Nonfarm Payrolls report. The US economy added 228,000 jobs in March, far surpassing the forecasted 135,000 and exceeding even the most optimistic expectations.

This surge in employment data boosted the dollar, with additional support from Federal Reserve Chairman Jerome Powell’s comments, where he emphasized a “wait-and-see” approach while cautioning about the potential inflation risks from tariffs.

However, in early trading today, the dollar reversed its gains, falling by 0.7%. Technically, the currency is trading below its 9-day simple moving average (SMA), with immediate resistance at $102.92 and key support at $101.05.