Gold prices in Dubai remained steady this Tuesday morning, holding firm after dipping below the Dh500 per gram mark during the previous session. According to the latest figures from the Dubai Jewellery Group, 24K gold opened at Dh497.25 per gram. Other popular variants also saw a decline, with 22K, 21K, 18K, and 14K gold trading at Dh460.5, Dh441.5, Dh378.5, and Dh295.25 per gram, respectively. This local trend mirrors a broader international slump, as global gold prices edged down to $4,127.6 per ounce, accompanied by a notable drop in silver prices.

Market experts, including Saxo Bank’s Ole Hansen, attribute this downward pressure to the strengthening US dollar and rising bond yields. With US 10-year real yields hitting an 18-year high and expectations of further Federal Reserve interest rate hikes, investors are finding gold less attractive as a non-yielding asset. However, analysts suggest that while higher rates present a short-term obstacle, gold may still gain long-term traction as a hedge against financial instability and the mounting fiscal risks associated with corporate credit stress in the US.