Gold prices in Dubai saw a noticeable decline on Thursday, dropping by Dh3.75 per gram as market sentiment soured over the potential for upcoming interest rate hikes. The 24K gold variant opened the trading day at Dh479.25 per gram, down from the previous day's Dh483. Similarly, other categories including 22K, 21K, 18K, and 14K also saw downward adjustments, trading at Dh443.75, Dh425.5, Dh364.75, and Dh284.5 per gram, respectively. This local trend mirrors the global market, where gold slipped by nearly 0.5 percent to trade below the $4,000 mark.

Market analysts suggest that the recent dip is largely driven by aggressive signals from US Federal Reserve officials, who have prioritized curbing inflation through continued rate increases. With CME FedWatch data indicating a 90.8 percent probability of a rate hike in the December meeting, investors are shying away from non-yielding assets like bullion. Experts from Century Financial note that higher interest rates elevate the opportunity cost of holding gold, creating a bearish outlook in the near term. Unless gold can break through its current technical resistance levels, the precious metal is expected to remain under pressure as the market waits for a definitive catalyst.