Gold prices in Dubai saw a slight decline on Tuesday morning, with the 24K variant dropping to Dh545.25 per gram from Monday’s closing price of Dh549.75. This downward trend was mirrored across other karats, as 22K, 21K, 18K, and 14K gold all experienced dips in early trading. On the global stage, spot gold fell by 0.9 percent to $4,529 per ounce, while silver saw a steeper decline, sliding two percent to Dh281.35 per ounce.

The cooling of gold prices comes as international markets grapple with rising oil costs and fresh tensions between the United States and Iran. Although there had been optimism regarding ongoing peace negotiations, recent military strikes in southern Iran have reignited concerns over regional stability and potential disruptions to oil production. Market analysts suggest that while a peace agreement remains a focal point, the long-term impact on infrastructure could hinder the stabilization of global oil supplies. Consequently, investors are now bracing for the possibility of further interest rate hikes this year to combat the looming threat of inflation.