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Gold prices drop in Dubai at the start of the week
Precious metal falls Dh2 per gram in early trade in UAE due to Middle East military conflict and stronger-than-expected US jobs data dimming hopes of interest rate cuts
- PUBLISHED: Mon 6 Apr 2026, 9:33 AM
[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]
Gold prices slipped in Dubai on Monday morning due to ongoing Middle East tensions and strong US jobs data, which dimmed hopes of interest rate cuts by the US Federal Reserve.
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The 24K gold price was trading at Dh561.50 per gram at the market opening on Monday, down from Dh563.50 per gram last week, a decline of Dh2 per gram.
Among other variants of the yellow metal, 22K, 21K, 18K and 14K were trading at Dh520.00, Dh498.50, Dh427.25 and Dh333.25 per gram, respectively.
Spot gold was steady at $4,676.5 per ounce.
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In March 2026, the US economy added 178,000 nonfarm payroll jobs, exceeding market expectations of 60,000 and reversing a revised loss of 133,000 jobs in February.
Simon Massabni, head of business development at xs.com, said gold prices are currently experiencing sharp volatility and noticeable pressure in a market environment that, at first glance, appears to contradict the traditional principles that have long governed the metal’s behaviour as a safe-haven asset during times of crisis.
“With geopolitical tensions escalating in the Middle East and rhetoric intensifying between the US and Iran, gold would normally be expected to surge strongly, driven by waves of fear and uncertainty. However, what is actually happening is partially the opposite, as the yellow metal is facing selling pressure and struggling to hold the key support level at $4,600,” said Massabni.
This shift, he added, reflects a structural change in how markets respond to risk, rather than being merely a temporary corrective move.
“One of the most prominent factors explaining this behaviour is the clear shift in investor preference towards the US dollar rather than gold, which I see as a logical development in the current financial environment. During fast-moving and highly volatile crises, investors tend to favour assets with greater liquidity and easier convertibility, giving the dollar a relative advantage over gold. This trend strengthens the US currency and creates direct inverse pressure on gold prices, particularly as uncertainty persists,” he added.
Accordingly, if this pattern continues, gold is unlikely to regain its momentum easily unless we witness a clear reversal in the dollar’s direction or a decline in its appeal as the primary safe haven.
