Time to buy? Gold prices plunge by Dh35 per gram; silver slumps nearly 10%

04/03/2026 06:43 AST

Gold and silver prices showed massive volatility on Tuesday, as the yellow metal plunged more than four per cent while silver lost nearly 10 per cent.

Gold prices plunged more than Dh35 per gram in Dubai on Tuesday evening as the precious metal lost over four per cent or $300 per ounce globally.

According to Dubai Jewellery Group data, the 24K gold price slumped to Dh611 per gram on Tuesday evening, down from Dh646.5 per gram when markets opened in the morning.

Among the other variants of the precious metal, 22K, 21K, 18K, and 14K slumped to Dh565.75, Dh542.5, Dh465.0 and Dh362.75 per gram, respectively.

Spot gold was trading at $5,045.43 per ounce, down $252.87 per ounce or 4.77 per cent at 7.15 pm UAE time as the US dollar strengthened amid the US-Iran war.

Silver plunged nearly 10 per cent to $80.3 (Dh294.33) per ounce.

Rania Gule, senior market analyst at xs.com, said statements by US President Donald Trump about continuing operations in Iran until achieving American objectives have heightened market anxiety.

"The most dangerous aspect of these developments is not the military event itself but the prolonged uncertainty. Markets can absorb sudden shocks, but they react more strongly to open-ended conflicts lacking a clear timeline. Therefore, the geopolitical risk premium embedded in gold prices will not dissipate quickly but will remain priced in as long as the escalation rhetoric continues and the likelihood of reciprocal responses increases," she added.

Another notable factor is the sharp rise in oil prices, which has revived inflation fears.

"The relationship here is complex: higher oil prices due to geopolitical risks boost demand for gold as a safe haven, but at the same time create inflationary pressures that could force the Federal Reserve to pause its monetary easing. Historically, gold has benefited from low-interest-rate environments, but the current situation is different; we are witnessing gold rising despite lower expectations for rate cuts. This confirms that the geopolitical factor temporarily outweighs the monetary factor, and investors prefer hedging against systemic risks even if the cost of holding a non-yielding metal rises," she added.

Khaleej Times