By: Economy Middle east

Gold prices slipped from near record highs on Monday as profit-taking set in and geopolitical support for safe-haven demand eased, prompting a broader pullback across the precious metals market. Silver traded close to the $80 per ounce level after touching a record high earlier in the session.

In the UAE, gold rates slipped on Monday, with 24-carat gold easing AED6 to AED540.25 and 22-carat gold retreating AED5.5 to AED500.25. Additionally, 21-carat gold fell AED5.25 to reach AED479.75, while 18-carat gold edged down AED4.5 to AED411.25.

Meanwhile, 14-carat gold fell AED3.5 to AED320.75.

Globally, spot gold dipped 1.09 percent to $4,484.71 as of 6:46 GMT, after hitting a record high of $4,549.71 on Friday. Meanwhile, U.S. gold futures for February delivery dipped 0.81 percent to $4,515.60.

Trump-Zelenskiy talks impact bullion

Gold’s rally has been largely driven by growing expectations that the U.S. Federal Reserve will cut interest rates further next year. Markets have increasingly priced in a faster easing cycle in 2026 as inflation shows signs of cooling, a scenario that typically benefits bullion by lowering the opportunity cost of holding it.

Anticipation of looser monetary policy has also weighed on the U.S. dollar this year, providing additional support for gold prices.

The precious metal has delivered an exceptional performance in 2025, climbing more than 72 percent so far. Analysts attribute this surge to a mix of factors, including aggressive central bank purchases, strong inflows into gold-backed exchange-traded funds, ongoing geopolitical tensions and investor demand for a hedge against currency volatility and broader macroeconomic risks.

On Monday, however, gold prices retreated from record levels after U.S.-led talks to end the war in Ukraine failed to deliver a decisive breakthrough. A lasting agreement that eases global tensions could pose a headwind for bullion, but recent developments have yet to reach that point.

U.S. President Donald Trump stated on Sunday that he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer, maybe very close” to reaching an agreement to end the war in Ukraine, though he noted that the future of the contested Donbas region remains unresolved.

The remarks came during a joint press conference held late on Sunday following talks at Trump’s Mar-a-Lago resort in Florida. Trump said it should become clear in a few weeks whether efforts to reach a peace deal will be successful.

Other precious metals

As gold prices declined from their recent high, spot silver eased 4.51 percent to $75.68 after reaching an all-time high of $83.62 earlier in the session. Silver has surged 181 percent year-to-date, outperforming gold, driven by its status as a critical U.S. mineral, supply constraints and low inventories amid growing industrial and investment demand.

Spot platinum declined 6.12 percent to $2,300.90 per ounce, following a record high of $2,478.50 earlier in the day, while palladium dropped 11.8 percent to $1,696.50 per ounce.