Gold prices in Dubai experienced a slight downturn during Tuesday’s early trading session, shedding Dh2 per gram across all categories. Data from the Dubai Jewellery Group shows that 24K gold opened at Dh483.25 per gram, a decline from the Dh485.25 recorded on Monday. Similar downward trends were observed in other categories, with 22K, 21K, and 18K gold settling at Dh447.50, Dh429.25, and Dh367.75 per gram, respectively, as spot gold prices also saw a 0.4 percent dip globally.

Market experts suggest that the precious metal is facing a complex tug-of-war as it struggles to hold the $4,000 per ounce threshold. Naeem Aslam of Zaye Capital Markets notes that while geopolitical tensions in the Middle East often boost safe-haven demand, gold is currently being pressured by rising oil prices and high US Treasury yields. These factors complicate the inflation outlook, potentially hindering the Federal Reserve’s ability to lower interest rates. Consequently, investors are weighing the risks of geopolitical instability against the rising opportunity cost of holding non-yielding assets, leaving gold’s immediate trajectory dependent on future diplomatic developments.