Dubai Gold Prices Plummet Below Dh500 Amid Middle East Tensions

Gold prices in Dubai plummeted to a seven-month low on Monday evening, dropping below Dh500 per gram. According to data from the Dubai Jewellery Group, 24K gold prices fell to Dh499.75 per gram, down by approximately Dh17 per gram from the weekend's prices of Dh516.50 per gram.

The decline in gold prices is attributed to Middle East geopolitical tensions and high oil prices. Spot gold also plummeted three percent to $4,149 per ounce.

Market strategists are warning that the current environment may make it harder for investors to hold onto gold due to rising interest rates and Treasury yields. Ahmad Assiri from Pepperstone notes that Monday's drop was a sharp move in historical context, with only about 1.7 percent of daily left-tail falls occurring at this level.

Assiri also predicts that $4,000 may become gold's new 'north star' in the current stressed environment, where high oil prices and elevated interest rates are expected to persist.