Gold prices in Dubai saw a noticeable dip on Tuesday, dropping by Dh4 per gram as the easing of geopolitical tensions between the US and Iran reduced the demand for the precious metal as a safe haven. By mid-morning, 24K gold was trading at Dh487, down from Monday's closing price of Dh491, with corresponding declines observed across 22K, 21K, 18K, and 14K variants. This local trend mirrors the global market, where spot gold slipped by 0.82 percent to $4,041 per ounce, and silver saw a sharper decline of 2.17 percent.

Market analysts suggest that while the cooling of the conflict has provided some relief, investors remain cautious due to persistent inflationary pressures and the potential for US interest rate hikes. According to Vijay Valecha, CIO of Century Financial, the precious metal is still locked in a broader downward trend, as the market anticipates the upcoming Federal Open Market Committee (FOMC) meeting. With energy costs rising due to regional instability, there is a strong expectation of a rate hike by year-end, which continues to exert downward pressure on gold prices. Technicians note that gold remains within a specific range, and unless it can break through the $4,160 resistance level, it may risk testing lower support levels in the near term.