Gold prices in Dubai experienced a notable decline on Friday, with values dropping by nearly Dh12 per gram as global market sentiment shifted. According to the Dubai Jewellery Group, 24K gold saw a significant dip of Dh11.75, settling at Dh486.75 per gram. This downward trend extended across all categories, with 22K, 21K, 18K, and 14K variants also recording substantial losses. On the global stage, the precious metal fell by 2.7 percent, trading at approximately $4,358 per ounce, reflecting a broader retreat in investor confidence.

Market experts, including Simon-Peter Massabni of xs.com, attribute this sell-off to a combination of geopolitical instability and shifting investment priorities. The ongoing conflict in the Middle East, coupled with the collapse of potential ceasefires, continues to rattle the markets. Investors are increasingly favoring the allure of stock markets and attractive bond yields over physical gold, leading to heavy outflows from gold-backed exchange-traded funds. As long as regional tensions persist and supply chains remain at risk, analysts warn that the selling pressure on gold is likely to continue in the near term.