Gold prices in Dubai have maintained their downward trajectory, shedding more than Dh3 per gram as markets opened this Wednesday. Data from the Dubai Jewellery Group indicates that 24K gold dropped to Dh519.25 per gram, marking a total decline of roughly Dh39 over the past nine days. This trend extends across all carats, with 22K, 21K, 18K, and 14K variants also experiencing notable price adjustments. Globally, spot gold has faced similar challenges, slipping below the $4,400 mark to trade at $4,304 per ounce.

Market experts, including Simon-Peter Massabni of xs.com, attribute this weakness to rising Treasury yields, which are creating a significant opportunity cost for investors holding gold. Heightened geopolitical tensions in the Middle East, paired with growing market anxiety regarding the Federal Reserve's monetary strategy, have kept yields elevated. Recent commentary suggesting that inflation remains a persistent threat has shifted investor sentiment, with many now anticipating more aggressive interest rate hikes. As these factors converge, gold continues to struggle to regain its previous momentum.