Dubai sees major drop in gold prices after US-China trade talk

Dubai: Gold prices in Dubai, United Arab Emirates (UAE), saw a sharp decline on the afternoon of Monday, May 12, with rates falling by Dirham 11.50 (Rs 265.59) per gram.

According to the Dubai Jewellery Group, the price of 24-carat gold dropped to Dh 389.00 (Rs 8,983.96) per gram, from Dh 400.50 per gram at the close of trading on Sunday, May 11.

Other gold categories also recorded notable declines:

• 22-carat: Dh 360.00 (Rs 8,314.20) per gram, up from Dh 371.00 per gram
• 21-carat: Dh 345.25 (Rs 7,973.55) per gram, up from Dh 355.00 per gram
• 18-carat: Dh 295.75 (Rs 6,830.35 ) per gram, up from Dh 305.00 per gram

Meanwhile, spot gold was trading at USD 3,277.53 per ounce on Monday morning, reflecting a 1.5 percent decrease.

The decline in gold prices follows positive signals from recent US-China trade talks on Sunday, which helped ease investor concerns. As confidence returned to the markets, focus shifted away from traditional safe-haven assets like gold towards riskier investments.

In April, both the US and China imposed reciprocal tariffs, sparking fears of a global recession and sending gold prices soaring.

Since taking office in January, President Trump has increased tariffs on Chinese goods to 145 percent, in addition to previous levies introduced during his first term and measures by the Biden administration.

In response, China has imposed export restrictions on certain rare earth elements and raised tariffs on American products to 125 percent targeting items such as soybeans and liquefied natural gas.