By: Economy Middle east

Gold and silver prices dropped sharply on Thursday amid a stronger dollar, which hovered near a two-week high, and growing indications that U.S.-China trade tensions may be easing, which reduced demand for safe-haven assets.

As of 5:06 GMT, spot gold fell 1.11 percent to $4,870.02 an ounce, pulling back after touching a near one-week high earlier in the session. Meanwhile, U.S. gold futures for April delivery slid 1.34 percent to $4,884.50 an ounce.

Spot silver also plummeted 9.86 percent to $76.35 an ounce after reaching a record high of $121.64 last week.

UAE gold prices slide AED7.5

In the UAE, gold rates posted notable declines, with 24-carat gold falling AED7.5 to AED586 and 22-carat gold losing AED6.75 to AED542.75.

Additionally, 21-carat gold dipped AED6.75 to AED520.25, and 18-carat gold lost AED5.75 to reach AED446.

Meanwhile, 14-carat gold fell AED4.5 to AED347.75.

U.S. dollar rises to near two-week high

Gold prices fell as the U.S. dollar rose, supported by the nomination of Kevin Warsh as Chair of the Federal Reserve. U.S. President Donald Trump’s nomination of Warsh has sparked speculation that the central bank could adopt a less dovish stance than previously anticipated, lending further support to the U.S. dollar.

The dollar index climbed to a near two-week high on Thursday, rising 0.17 percent to 97.78, which raises the cost of dollar-denominated gold for buyers using other currencies.

The stronger dollar caused a broader selloff across most asset classes, including precious metals, cryptocurrencies and regional equities. Asian stocks slipped in line with their U.S. counterparts as worries over the surging costs of AI investment continued to weigh on the technology sector.

“With the blink of an eye, volatility in the precious metals returns with silver falling 16 percent in quick time. It is common after a period of extreme volatility to experience a sequence of volatility aftershocks,” said Tony Scaymore, Analyst at IG.

“After the 20 percent plunge from $5,600, gold hit $4,400 before rebounding to $5,065. Extreme volatility like this typically brings aftershocks, and more turbulence is expected in the short term,” he added.

Geopolitical risks ease as Iran and U.S. confirm talks

On the geopolitical front, Iran and the United States are set to hold talks in Oman on Friday, officials from both sides said. Meanwhile, China may increase purchases of U.S.-grown soybeans, President Donald Trump said, following what he described as “very positive” talks with Chinese President Xi Jinping on Wednesday.

Meanwhile, a state-backed industry association reported a decline in China’s gold consumption in 2025, adding to the sharp decline in prices. Gold demand fell 3.57 percent year-on-year to 950.096 metric tons, while output from domestically sourced raw materials rose 1.09 percent to 381.339 metric tons, the association said on Thursday.

Other precious metals

As gold and silver prices declined sharply on Thursday, the broader precious metals market declined. Spot platinum plunged 7.55 percent to $2,058.83 an ounce after reaching a record high of $2,918.80 on January 26, while palladium fell 3.75 percent to $1,707.88 an ounce.