Gold prices in Dubai saw a noticeable decline this Friday, with 22K gold dropping below the Dh500 mark per gram. According to the latest data from the Dubai Jewellery Group, 24K gold also dipped to Dh539.25, reflecting a loss of Dh2.75 from the previous day's closing figures. Similar downward trends were observed across other purities, with 21K, 18K, and 14K gold trading lower as well. This shift comes as a welcome development for many residents, as the UAE’s jewellery sector anticipates a surge in demand with major festivals like Diwali, Dussehra, and Navratri on the horizon.

On the global front, spot gold prices edged down by 0.5 percent to $4,470 an ounce, as investors turn their attention to upcoming US nonfarm payroll data. Market experts suggest that while softer employment figures could provide some relief to gold prices, the metal remains sensitive to potential interest rate hikes and rising inflation risks linked to oil prices and geopolitical tensions in the Middle East. Moving forward, traders are closely monitoring economic reports and jobless claims, which are expected to dictate the short-term trajectory of the precious metal's performance.