Dubai Gold Prices Drop Amid Rising Interest Rates and Energy Market Concerns

Gold prices in Dubai declined on Monday as investors remained cautious amid expectations of further US interest rate hikes and inflation fears. According to data from the Dubai Jewellery Group, 24K gold was trading at Dh525.0 per gram, down from Dh527.5 per gram at the weekend close. 22K, 21K, and 18K gold also dropped in price, with 18K slipping below Dh400 per gram.

The decline comes after the US Federal Reserve raised interest rates last week and hinted at further hikes in the coming months. This move has put pressure on gold prices, which tend to perform poorly when interest rates rise.

However, energy market anxiety subsided after Saudi Arabia rerouted crude oil exports following a recent attack on an export terminal. The shift helped push crude prices down from recent peaks and provided relief to broader inflationary pressures.