Gold prices in Dubai have faced continued downward pressure, remaining below the Dh500 mark for the second week in a row. As of Monday morning, August 3, the 24K variant opened at Dh489.75 per gram, marking a notable decline from the previous Friday's close of Dh495.50. Other categories saw similar dips, with 22K gold trading at Dh453.50, 21K at Dh435.00, 18K at Dh372.75, and 14K at Dh290.75. This current valuation reflects a broader struggle for the precious metal, which has shed nearly 25 percent of its value since reaching its peak earlier in January.

Market analysts attribute this weakness to expectations of sustained high interest rates, which weigh heavily on non-yielding assets like gold. Vijay Valecha, CIO of Century Financial, noted that gold has failed to break through key resistance levels, showing a persistent lack of upward momentum according to technical indicators like the RSI. With global spot prices hovering around $4,064 per ounce and a strong likelihood of further rate hikes by the end of the year, investors remain cautious. Unless there is a decisive breakout above established resistance points, experts suggest the metal will likely continue to trade within a constrained range in the near term.