The yellow metal has experienced a significant decline in prices over the weekend, as the ongoing standoff in the Strait of Hormuz has sustained elevated energy prices, thereby intensifying the pressure on the Federal Reserve to raise interest rates once more in its battle against persistent inflation. In the UAE, gold prices commenced this Monday morning at a subdued level. 24-karat gold is priced at Dh505.50, reflecting a decline from the previous close of Dh516.50, marking a decrease of Dh11 overnight. 22-karat is priced at Dh468, while 14-karat gold has decreased to Dh300 per gram. If one examines the bullion trade, it has experienced a notable decline of 1.8 percent, dropping below the $4200 threshold.

This represents a continuation of its previous decline, during which it experienced a loss exceeding 2% in the prior week. Crude prices increased following Tehran’s assertion that it would maintain its stance on conditions for reopening the strait, occurring a day after Trump rejected its seven-day proposal. Trump indicated to Axios that he expects negotiations to recommence this week. As the US-Iran conflict approaches its eighth month, Brent has experienced an increase exceeding 70% in 2026. Fed officials unanimously supported a quarter-point increase in the benchmark rate earlier this month, and several have since indicated that additional hikes may be necessary. Markets are currently reflecting an approximate 65% probability of an additional increase occurring in October.

Justin Lin told that gold remains closely tied to oil prices and the shifting hopes for a resolution in the Middle East. “Much of the natural buyer base is likely to remain on the sidelines until there is greater clarity around how the Iran war ends. At the same time, sellers are largely taking their cues from real yields, which have continued to move higher,” he added. Gold has remained within a constrained range of $4,230 to $4,510 throughout September, as traders continuously evaluate the trajectory of Federal Reserve policy, which has kept prices significantly below January’s peak of nearly $5,600. Even so, the pace of dealmaking remains robust.

Gold Fields Ltd. of South Africa initiated a proposal for Northern Star Resources Ltd., the largest gold producer in Australia, but was turned down on Monday. At 08:30 a.m. in Dubai, spot gold experienced a decline of 1.88 percent, priced at $4,197.54 per ounce. Silver declined by 3.41 percent to $61.98, compounding last week’s 3 percent decrease, while both platinum and palladium experienced declines exceeding 2 percent. The Dollar Spot Index, a measure of the US dollar, increased by 0.1% following a 2% rise thus far this month.