Dubai, May 11, 2025 – Global gold prices witnessed one of their steepest single-day declines this year, tumbling by a staggering $102 to $3,225 an ounce, following reports of an interim tariff deal between the US and China.

The sharp correction comes after months of steady gains that had driven gold past the $3,500 mark, leaving investors and buyers questioning whether this is the start of a long-term correction or a temporary dip.

Dubai Gold Rate Reacts with Dh12 Drop

The Dubai Gold Rate now stands at Dh359.25 per gram for 22K gold, marking a Dh12 per gram decrease compared to last evening.

“There is a massive Dh12 a gram difference between the Dubai gold rate now and what it was last evening,” confirmed Anil Dhanak, Managing Director of Kanz Jewels. “However, I don’t believe UAE shoppers will immediately flock to gold stores just because of this drop. Many still prefer to wait for occasions and budget their spending accordingly.”

Tourists, however, continue to make decisions based on:

• Price differences with their home countries,

• Purity standards of Dubai’s gold,

• Design variety — including Italian, Turkish, and Korean collections — which often surpass what is available in their local markets.

Market Analysts: 'Gold is Finding its Right Level'

Commodities analysts are closely watching to see if this correction will hold. The consensus is that gold's surge was largely fueled by concerns over tariff tensions and a weakening dollar — issues that had intensified in April and early May.

The recent breakthrough in US-China trade discussions may now be prompting the market to "cut the fat," potentially adjusting gold back to more stable levels.

Temporary Dip or Trend Shift?

While this isn't the first price correction in 2025 — previous declines of $50 to $75 had also occurred — those dips were quickly reversed with overnight price rebounds. Whether the latest drop represents a true market reversal remains uncertain.

So, will gold continue to slide or bounce back in the coming hours? Buyers, investors, and analysts alike are watching closely.