Gold prices in Dubai saw a noticeable decline on Friday morning, mirroring a global trend as the precious metal dipped below the $4,000 per ounce threshold. According to the latest figures from the Dubai Jewellery Group, 24K gold opened at Dh481.75 per gram, marking a decrease from Thursday’s closing price of Dh485. This downward trend extended across other categories as well, with 22K, 21K, and 18K gold dropping to Dh446.25, Dh427.75, and Dh366.75 per gram, respectively.

The slump is largely driven by robust US economic data and rising oil prices, which have fueled investor speculation regarding further interest rate hikes by the Federal Reserve. Market experts suggest that while previous dips have often triggered "value buying," the current economic climate—characterized by inflation concerns and strong employment figures—is creating a challenging environment for gold. As core PCE remains steady and jobless claims stay low, the prospect of a rate cut appears increasingly distant, leaving gold struggling to maintain its momentum in the face of persistent inflationary pressures.