By: Economy Middle east

Gold and silver prices extended their losses on Friday and were on track for a second consecutive weekly drop, as a global sell-off in technology shares and a firmer U.S. dollar erased gains from a short-lived rebound earlier in the week.

As of 5:02 GMT, spot gold was down 1.18 percent at $4,810.36 an ounce, while U.S. gold futures for April delivery slipped 1.22 percent to $4,830 an ounce.

In the UAE, gold rates posted notable declines, with 24-carat gold falling AED5.25 to AED579.75 and 22-carat gold losing AED4.75 to AED537. Additionally, 21-carat gold dipped AED4.75 to AED514.75, and 18-carat gold lost AED4 to reach AED441.25.

Meanwhile, 14-carat gold fell AED3 to AED344.25.

Silver loses 16 percent this week

Spot silver fell a further 6.02 percent to $72.74 an ounce after plunging 19.1 percent in the previous session.

Silver saw sharp swings in Friday’s trade, climbing as much as 3 percent after earlier tumbling 10 percent to below the $65 mark, its lowest level in more than six weeks. The white metal was down nearly 16 percent for the week, following an 18 percent plunge last week, its steepest weekly decline since 2011.

Global stock markets fell for a third straight session as the Wall Street sell-off deepened, while precious metals and cryptocurrencies were hit by sharp volatility. Furthermore, the U.S. dollar hovered near a two-week high and was on course for its strongest weekly gain since November, making dollar-denominated assets pricier for holders of other currencies.

Gold prices dip on stronger dollar

During Friday’s Asian session, gold prices bounced sharply from the mid-$4,600 area, their lowest level in four days, but struggled to build on the recovery. A deterioration in risk appetite, reflected in widespread losses across global equity markets, prompted a shift toward traditional safe havens, lending support to the metal.

Additional backing came from expectations of further U.S. Federal Reserve rate cuts in 2026, reinforced by signs of softening in the U.S. labor market, which tend to favor non-yielding assets like gold. According to the CME FedWatch tool, markets are now factoring in at least two 25-basis-point interest rate cuts by the Fed in 2026. Those expectations were reinforced by U.S. economic data released this week, which signaled emerging weakness in the labor market.

At the same time, the White House said diplomacy remains U.S. President Donald Trump’s preferred approach toward Iran, while noting that military options remain on the table. This has kept geopolitical risks elevated, further supporting safe-haven demand for gold.

However, expectations that the nominated Fed Chair Kevin Warsh may take a less dovish stance have helped the U.S. dollar hold on to its recent rebound from a four-year low, limiting the upside in gold prices.

Other precious metals

As gold and silver prices declined, spot platinum slid 0.94 percent to $1,968.17 an ounce after reaching a record high of $2,918.80 on January 26, while palladium rose 0.84 percent to $1,630.25. Despite the moves, both metals were on track for weekly declines.