Gold prices in the UAE have extended their downward trend, dropping by Dh4.75 per gram this Monday and remaining below the Dh500 threshold for the second week in a row. As the markets opened, the 24K variant was priced at Dh488, marking a noticeable dip from Friday’s closing figure of Dh492.75. Other common variants followed suit, with 22K, 21K, 18K, and 14K gold trading at Dh452.00, Dh433.25, Dh371.50, and Dh289.75, respectively. This decline mirrors broader international trends, where spot gold slipped by 0.72 percent, and silver saw a decline of roughly 1.1 percent.

Industry experts attribute this ongoing weakness to a strengthening US dollar, bolstered by expectations of further interest rate hikes. Vijay Valecha, Chief Investment Officer at Century Financial, noted that gold has struggled to maintain its momentum after falling below the $4,000 mark. With the market anticipating potential rate adjustments by the Federal Reserve, the greenback has gained strength, making non-yielding assets like bullion less appealing to investors compared to Treasury bonds. While technical indicators suggest some potential for short-term trading opportunities, the overall outlook remains bearish for both gold and silver as they face significant headwinds.