Gold, Silver Prices Edge Down In Early Dubai Trade

2026-03-16 02:08:09

(MENAFN- Khaleej Times) [Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]

Gold prices slipped on Monday morning in Dubai and globally as high oil prices dented hopes of interest rate cuts.

Recommended For You

The Dubai Jewellery Group data showed the 24K gold price trading at Dh604.25 per gram when markets opened on the first trading day of the week, down half a dirham per gram.

Stay up to date with the latest news. Follow KT on WhatsApp channels.

The other variants of the yellow metal also fell, with 22K, 21K, 18K, and 14K trading at Dh559.50, Dh536.50, Dh459.75, and Dh358.75 per gram, respectively.

Globally, spot gold was trading at $5,009 per ounce, down 0.21 per cent. Silver was also trending downward, trading at $80.37 per ounce, down 0.26 per cent.

Gold has struggled somewhat in recent weeks, even as dark clouds gather over the Middle East and the outlook for the global economy becomes increasingly uncertain.

The precious metal continued to hold comfortably above $5,000, yet the lack of a stronger bid in the face of rising geopolitical tensions has raised questions among investors.

“The current market backdrop is dominated by one of the most significant disruptions to global energy flows in decades. The interruption of crude, gas, and refined fuel supplies from the Arabian Gulf has triggered sharp gains across several commodities - from oil and natural gas to diesel, LNG and fertilisers. Such moves increase the risk of a renewed inflation shock while simultaneously threatening global growth, creating the classic ingredients for a stagflationary environment,” said Ole S. Hansen, head of commodity strategy at Saxo Bank.

In this context, gold's muted response may appear counterintuitive.

“However, the explanation partly lies in the metal's role as one of the most liquid markets in the commodity complex. During periods of elevated uncertainty, investors often seek to raise liquidity, and gold frequently becomes a source of funds to meet margin calls or rebalance portfolios. This dynamic has contributed to the recent sideways price action,” he added.

At the same time, the short-term interest rate market has adjusted expectations, effectively pricing out the prospect of US rate cuts in 2026.

“Combined with a firmer US dollar, this shift has created an additional headwind for gold in the near term. Higher real yields tend to reduce the relative appeal of non-yielding assets, particularly when markets interpret rising commodity prices as an inflation risk that could prompt tighter monetary policy,” added Hansen.