Gold prices in Dubai experienced a sharp decline this Friday, with 24K gold falling by Dh8.75 to reach Dh555.0 per gram during early trading hours. This downward trend extended across all major categories, as 22K, 21K, 18K, and 14K variants also saw price reductions. This retreat reflects a broader struggle in the precious metals market, as spot gold dipped by over 1.5 percent, and silver faced even steeper losses, dropping 4.5 percent per ounce.

The slump is largely attributed to mounting inflation fears in the US, compounded by rising Treasury yields that have pressured gold's performance. Market experts are currently keeping a close watch on geopolitical developments, specifically high-level diplomatic discussions between US and Chinese leadership regarding trade and regional tensions. While central bank gold purchases offer some long-term stability, analysts suggest that persistent inflation and high bond yields will likely keep a lid on any significant recovery for gold in the immediate future.