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UAE: Gold prices plunge Dh9 per gram; India-Pakistan tension 'favourable'
Global tensions remain elevated in Eastern Europe and the Middle East, while hostilities between two South Asian nations support safe-haven demand
- PUBLISHED: Thu 8 May 2025, 12:01 PM
Gold prices plunged Dh9 per gram at the opening of the markets in Dubai on Thursday.
The 24-karat was selling at Dh404 per gram on Thursday morning, down from Dh409 per gram at the close of the markets on Wednesday. Among the other variants of the precious metal, 22-karat, 21-karat and 18-karat fell to Dh370.5, Dh355.25 and Dh304.5 per gram, respectively.
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Spot gold was trading at $3,336.86 per ounce, down 1.45 per cent, due to US Federal Reserve chief Jerome Powell’s cautious views after the Fed meeting last night as well as the easing of trade tension between the US and China.
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Washington and Beijing have declared that Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will travel to Switzerland to negotiate with China’s Vice Premier He Lifeng. This meeting marks the first occurrence since the Trump administration implemented extensive tariffs on China, increasing expectations for a potential agreement between these two major economies.
“In South Asia, military tensions are escalating between the two nuclear-armed nations, India and Pakistan, which is perceived as favourable for gold. Nevertheless, in the present scenario, the optimism surrounding trade discussions is overshadowing any added demand for safe havens,” said Vijay Valecha, chief investment officer of Century Financial.
Fadi Al Kurdi, founder and CEO of FFA Kings, said the prospect of negotiations between Washington and Beijing has fuelled optimism, even as broader trade uncertainties persist.
“On the geopolitical front, global tensions remain elevated in Eastern Europe and the Middle East, while hostilities between India and Pakistan have resurfaced, supporting safe-haven demand for gold,” he added.
