Gold prices in the UAE saw a significant dip this Friday morning, with 24K gold falling below the Dh500 mark to trade at Dh496.75 per gram. This sharp decline, representing a loss of Dh12.5 from the previous day's close, has brought some much-needed relief to local shoppers looking to invest in jewelry. Similar downward trends were observed across other purities, with 22K gold slipping to Dh460 per gram, while 21K and 18K variants also saw notable price reductions. This movement tracks with global market shifts, where spot gold dropped by 2.4 percent to $4,123 an ounce.

Market analysts attribute this slump to a "hawkish" stance from the US Federal Reserve, coupled with a strengthening dollar. As investors weigh the possibility of prolonged high interest rates, the appeal of non-yielding assets like gold has diminished, pushing treasury yields higher and making bullion more expensive for international buyers. While geopolitical tensions had previously bolstered gold prices, experts believe the focus has now shifted toward upcoming US economic data. Consequently, as long as the Federal Reserve maintains its current restrictive policy to combat inflation, gold may face continued pressure in the near term, leaving investors to carefully navigate this volatile landscape.