Gold prices exhibited stability at the start of the week in Dubai, after experiencing a decrease exceeding Dh21 per gram in the prior 10 days. The current price of 24K gold stands at Dh547.25 per gram, indicating a decline of Dh21.25 per gram in recent days. On May 8, the price of 24K gold stood at Dh568.5 per gram. The other precious metal variants – 22K, 21K, 18K and 14K – were priced at Dh506.75, Dh486.0, Dh416.5 and Dh325.0 per gram, respectively, on Monday morning. Spot gold rose to $4,535.7 per ounce. Gold experienced a decline, approaching the lowest level observed this month on Friday. This movement was influenced by a rise in Treasury yields and the strength of the US dollar, both of which continued to apply downward pressure on the metal.

Elevated energy prices and the resulting inflation concerns could maintain upward pressure on US Treasury yields, thereby impacting non-yielding assets negatively. On Monday, it experienced a decline of 1.1 per cent, settling at $4,488.99 per ounce in earlier trade, marking its lowest level since March 30. The precious metal encountered downward pressure as geopolitical tensions intensified following a drone strike that sparked a fire at a nuclear power facility in the UAE. This incident subsequently drove up crude prices and fueled speculation about interest rates.

Additionally, Saudi Arabia reported the interception of three drones, while US President Donald Trump warned that Iran must act “fast” as efforts to resolve the US-Israeli conflict appear to have stalled. JPMorgan, the prominent US investment bank, has adjusted its forecast for the average gold price in 2026 to $5,243 per ounce, reflecting a downward revision from the earlier estimate of $5,708.