Gold prices in Dubai started the week on a softer note, dropping as investors adopt a cautious approach ahead of the highly anticipated US Federal Reserve meeting. After reaching a impressive three-month high last week, the precious metal saw a cumulative decline of roughly Dh25. By Monday morning, 24K gold was trading at Dh533, a decrease from the previous Friday's close of Dh536.75, while other variants like 22K, 21K, 18K, and 14K also followed the downward trend.

Market experts suggest this correction follows a period of intense volatility and growth driven by unique macroeconomic factors. Ole Hansen of Saxo Bank notes that the recent rally was largely fueled by growing anxieties over US fiscal sustainability and shifting government bond strategies. Despite higher bond yields and persistent inflation, gold has maintained a strong performance due to consistent central bank purchasing and a growing investor preference for assets that hedge against long-term fiscal uncertainty.