Current Market Trends
Gold prices fell in Dubai on Monday morning as ongoing tensions in the Middle East and strong US jobs data dampened hopes of interest rate cuts by the US Federal Reserve. The 24-carat gold price was trading at Dh561.50 per gram when the market opened on Monday, compared to Dh563.50 per gram last week, down Dh2 per gram.
Gold Variants and Prices
Among other variants of the yellow metal, 22K, 21K, 18K and 14K traded at Dh520.00, Dh498.50, Dh427.25 and Dh333.25 per gram respectively. The spot gold price was stable at $4,676.5 per ounce.
US Economy and Job Market
In March 2026, the U.S. economy added 178,000 nonfarm jobs, beating market expectations of 60,000 and reversing a revised 133,000 job loss from February.
Market Analysis
Gold prices are currently experiencing strong volatility and noticeable pressure in a market environment that, at first glance, appears to contradict the traditional principles that have long guided the metal’s safe-haven behavior in times of crisis. As geopolitical tensions escalate in the Middle East and rhetoric between the US and Iran intensifies, one would normally expect gold to rise sharply on waves of fear and uncertainty. However, what is actually happening is partly the opposite, as the yellow metal is under selling pressure and struggling to hold the key support level at $4,600.
Factors Affecting Gold Prices
This shift reflects a structural change in how markets respond to risk and is not just a temporary corrective measure. One of the key factors explaining this behavior is the significant shift in investor preference towards the US dollar over gold, which is a logical development in the current financial environment. During fast-moving and highly volatile crises, investors tend to prefer assets with greater liquidity and easier convertibility, giving the dollar a relative advantage over gold. This trend strengthens the US currency and creates direct reverse pressure on the price of gold, especially if uncertainty persists.
Future Outlook
Accordingly, if this pattern continues, gold is unlikely to regain momentum anytime soon, unless there is a significant reversal in the dollar’s direction or a decline in its appeal as a primary safe-haven asset.
