Gold Prices Plunge in UAE Amid Escalating Hormuz Tensions
Gold prices plummeted in the UAE on Monday as escalating tensions surrounding the Strait of Hormuz continued to bolster crude oil costs. The price of 24-karat gold dropped to Dh505.50 per gram from the previous close of Dh516.50, marking a decline of Dh11.
The move follows international bullion prices extending their decline by about 1.8 percent to below the $4,200-an-ounce level. The price drop comes as rising energy costs and expectations of tighter US monetary policy weighed on bullion demand.
Higher oil prices are adding to concerns over persistent inflation, which could complicate the US Federal Reserve's policy outlook. Brent crude has risen more than 70 percent in 2026, increasing the risk of further price pressures across the global economy.
The Federal Reserve raised its benchmark interest rate by 25 basis points earlier this month, with officials indicating that additional increases may be necessary if inflation remains elevated.