Gold prices in the UAE experienced a notable dip as markets opened on Friday, with the 24K variant sliding to Dh522 per gram. According to data from the Dubai Jewellery Group, other purities also saw downward movement, with 22K, 21K, 18K, and 14K trading at Dh483.5, Dh463.5, Dh397.25, and Dh310 per gram, respectively. This decline continues a broader downward trend for 24K gold, which has fallen by nearly Dh38 per gram since late August.

Market analysts attribute this cooling trend primarily to the surging US dollar and rising Treasury yields, which diminish the appeal of non-interest-bearing assets like gold. Furthermore, the global oil rally—with prices crossing the $100-per-barrel mark—has created a complicated economic landscape. While geopolitical instability usually boosts gold as a safe-haven asset, current concerns over inflation and the potential for central banks to keep interest rates elevated for a longer period are exerting significant downward pressure on precious metal prices.