Gold prices in Dubai continued to decline on Friday morning as the precious metal lost about 40 dirhams per gram over the last month.
According to data from Dubai Jewellery Group, the price of 24-karat gold at the market opening on Friday was 513.75 dirhams per gram, which is lower than the level of 514.25 dirhams per gram recorded when trading closed on Thursday.
A month ago, the precious metal traded at approximately 554 dirhams per gram. Recently, gold has been under pressure due to the strengthening dollar and concerns about inflation caused by rising oil prices.
Other varieties of the yellow metal also showed a decrease: 22K traded at 475.75 dirhams, 21K at 456.00 dirhams, and 18K at 391.00 dirhams per gram.
The spot weight of gold slightly decreased to $4261 per ounce, while silver fell by 0.2 percent, reaching $63.40 per ounce.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, noted that gold is facing an increasingly hostile macroeconomic backdrop. The rise in US Treasury yields, real rates, and the dollar reflects market expectations regarding inflationary risks and the tightening policy of the US Federal Reserve.
He added that while higher rates remain a short-term obstacle, they also increase long-term financial risks, as increased borrowing costs put pressure on governments, corporations, and other indebted parts of the financial system. Meanwhile, investment demand remains surprisingly resilient; Bloomberg data shows that global gold ETF holdings grew by almost 50 tons in September alone, despite rising real rates.
Furthermore, Chinese demand remains exceptionally strong: imports exceeded 1000 tons by August, which is already more than the total volume for the entire year 2025.
Gold, along with other precious investment metals, is once again subject to traditional macroeconomic factors. The sharp repricing of the US Treasury yield curve since the start of the Iran war accelerated in recent days, which raised nominal and real rates and supported the renewed growth of the dollar. For an asset like gold, which does not generate interest income, this combination usually serves as a powerful incentive for investors to reduce their risks.