Gold prices in Dubai saw a noticeable decline this Monday, with 24K gold dropping by Dh11 to open at Dh505.5 per gram. This recent decrease is part of a broader downward trend, as the precious metal has shed over Dh18 per gram in the past week alone. Other variants also followed suit, with 22K trading at Dh468, 21K at Dh448.75, 18K at Dh384.75, and 14K at Dh300 per gram. Internationally, the pressure was even more pronounced, with gold falling by over 2% and silver experiencing a significant drop of more than 3.5%.

Market analysts attribute this slump primarily to a surging US dollar, which has reached three-month highs due to a hawkish stance from the Federal Reserve and a global sell-off in the bond market. Experts from firms like Century Financial note that rising energy costs and the prospect of further interest rate hikes are keeping bullion prices suppressed. Despite these immediate headwinds, some investors remain optimistic about gold's long-term potential as a portfolio hedge, citing strong ETF demand and technical support levels that may prevent further steep declines in the near future.