By: Economy middle east

Gold prices declined on Thursday after hitting more than a three-week high in the previous session, supported by a weaker dollar and renewed safe-haven demand amid uncertainty over U.S. tariff policy and ongoing U.S.-Iran negotiations.

As of 5:10 GMT, spot gold fell 0.27 percent to $5,192.92 per ounce, while U.S. gold futures for April delivery slipped 0.30 percent to $5,209.80.

In the UAE, gold rates declined, with 24-carat gold and 22-carat gold falling AED2.5 to AED625.75  and AED579.25, respectively. Additionally, 21-carat gold eased AED2.25 to AED555.5 and 18-carat gold edged down AED2 to AED476.25.

Meanwhile, 14-carat gold fell AED1.5 to AED371.5.

U.S. dollar remains under pressure

The U.S. dollar started the session under pressure after stronger-than-expected earnings from Nvidia lifted investor sentiment, supporting gold prices in early trading. A weaker dollar makes gold, which is priced in the U.S. currency, more affordable for buyers using other currencies.

“The greenback has struggled to gain traction as markets consider the impact of new tariff threats. President Trump warned of higher duties on countries that do not follow existing trade deals, after the Supreme Court ruled against earlier emergency tariffs. A 10 percent global tariff, with talk of raising it to 15 percent, has made investors cautious and limited the dollar’s short-term strength,” said Vijay Valecha, Chief Investment Officer, Century Financial.

Markets are now looking ahead to further details on the latest U.S. tariffs targeting imported goods. On Wednesday, U.S. Trade Representative Jamieson Greer said tariff rates for certain countries would increase to 15 percent or more from the recently introduced 10 percent, though he did not specify which trading partners would be affected or provide additional details.

Investors were also looking ahead to the release of weekly jobless claims data later in the day for further signals on the Federal Reserve’s monetary policy trajectory.

Traders are currently pricing in three quarter-point interest rate cuts from the Federal Reserve this year, according to CME’s FedWatch Tool.

Geopolitical risks mount as Iran-U.S. talks continue

Meanwhile, Iran and the United States are set to meet in Geneva on Thursday for the latest round of negotiations aimed at resolving their long-running nuclear dispute and preventing potential new U.S. strikes following a significant military buildup.

Deutsche Bank highlighted a renewed outperformance of white metals compared to gold. In a recent note, the bank said this trend supports its year-end silver forecast of $100 per ounce, based on a gold-silver ratio of 60.

On Wednesday, JPMorgan also lifted its long-term forecast for gold prices by 15 percent to $4,500 per ounce, while maintaining its year-end 2026 projection of $6,300.

The bank pointed to sustained central bank purchases, public announcements of U.S. Treasury divestment and a broader shift by countries seeking to diversify revenue bases away from the dollar and toward the Chinese renminbi.

“Gold remains supported by haven demand amid tariff uncertainty and ongoing U.S.-Iran nuclear talks. This has weakened the dollar, helping the yellow metal recover over half the losses incurred late last month,” added Valecha.

Other precious metals

Elsewhere in precious metals markets, spot silver gained 0.21 percent to $89.60 per ounce. Spot platinum rose 0.24 percent to $2,292 per ounce, while palladium dipped 0.65 percent to $1,783.25 per ounce.