Gold prices in Dubai have continued their downward trajectory, with the cost of 24K gold falling by approximately Dh40 per gram over the last month. Market data from the Dubai Jewellery Group shows that 24K gold opened at Dh513.75 per gram on Friday, continuing a slide that saw the metal drop from highs of Dh554 just weeks ago. Other variants have mirrored this decline, with 22K, 21K, and 18K gold trading at Dh475.75, Dh456.00, and Dh391.00 per gram, respectively, as market pressures mount.

Experts attribute this retreat to a challenging macroeconomic environment characterized by a strengthening dollar and rising US Treasury yields. As investors weigh the impact of inflation and potential Federal Reserve policy shifts, the non-interest-bearing nature of gold has made it less attractive in the short term. Despite these headwinds, however, global investment demand remains surprisingly steady, supported by robust gold ETF holdings and exceptionally strong import figures from China, suggesting that the metal still holds significant long-term appeal for many global investors.