Gold prices in Dubai saw a noticeable decline on Monday, dropping by Dh5.25 as geopolitical instability continues to rattle markets. The 24K variant opened at Dh563.00, down from its previous closing price of Dh568.25. Meanwhile, other gold denominations also followed the downward trend, with 22K, 21K, 18K, and 14K variants trading at Dh521.25, 499.75, 428.25, and 334.00, respectively. Globally, the precious metal dipped by roughly 0.28 percent, while silver managed to buck the trend with a modest 1.22 percent gain.

The market downturn is largely fueled by the breakdown in ceasefire negotiations between Washington and Tehran. US officials have dismissed Iran's recent proposal as unacceptable, further complicating efforts to resolve the ongoing conflict. As the diplomatic impasse hits the 33-day mark, concerns are mounting over the security of the Strait of Hormuz and the deepening humanitarian crisis in Lebanon, where recent military operations have resulted in a significant loss of life. These regional tensions remain a primary driver for the current volatility in precious metal prices.