Gold prices in Dubai dropped below Dh400 on Friday, as global precious metal values fell following China’s announcement regarding potential tariff exemptions for certain US goods.
### Current Prices
The market for the 24K gold variant was set at Dh397.25 per gram, while the prices for 22K, 21K, and 18K were Dh367.75, Dh352.75, and Dh302.25 per gram, respectively.
### Recent Trends
Since reaching a peak of Dh420 per gram on Tuesday, gold has seen a decline of nearly Dh23 per gram over the last three days.
### Global Context
At midday, gold was priced at $3,306.97 per ounce, dipping below $3,300 in the early trading session. China’s consideration to exempt specific US imports from its 125% tariffs indicates a growing concern over the impact of the trade conflict on its economy. Businesses have been urged to identify goods that might qualify for these exemptions.
### Expert Insight
Vijay Valecha, Chief Investment Officer at Century Financial, noted that despite the overarching uncertainty linked to US-China trade relations, gold has maintained its value, bolstered by expectations of monetary easing and a slight decrease in the US Dollar. He comments, “While there is still a positive risk sentiment with the easing trade tensions and President Trump’s remarks regarding Fed Chair Jerome Powell, the trend towards looser monetary policies seems to have a greater influence. However, reports from US Treasury Secretary Scott Bessent dismissed the idea of unilateral tariff reductions, highlighting the ongoing unpredictability in the dialogue between the US and China.