Gold prices in Dubai have extended their downward trend for the fourth consecutive day, with 24K gold dropping to Dh493 per gram. This decline reflects a broader global retreat, as spot gold prices slipped by over one percent to $4,091.1 per ounce. Market analysts, including Vijay Valecha of Century Financial, attribute this pressure to the ongoing Iran conflict, which has fueled inflation concerns and sparked fears that the US Federal Reserve may keep interest rates elevated for a longer period. Since the conflict escalated in late February, gold has faced significant headwinds, struggling against the rising oil prices and bond yields that typically weigh on non-interest-bearing assets.

Despite the recent sell-off, there is a silver lining as institutional interest remains resilient. Valecha notes that central bank acquisitions and a four-year high in gold-backed ETF holdings suggest that savvy investors are using the current price correction as an entry point rather than exiting the market. Technically, gold is currently confined to a trading range between $4,070 and $4,220 per ounce. Analysts are now closely watching the $4,080 support level, noting that a definitive breakout from the current range will likely be the primary catalyst for determining the metal's medium-term price direction as the market continues to weigh geopolitical risks against monetary policy shifts.