On the first trading day of the week, gold prices experienced a notable decline, slipping by half a dirham per gram, marking a 7-month low as the markets opened on Monday.

According to data provided by the Dubai Jewellery Group, 24K gold was trading at AED 223.25 per gram on Monday morning, compared to the previous week's closing price of AED 223.75. Simultaneously, 22K, 21K, and 18K gold also saw a decrease in value, opening at AED 206.75, AED 200.0, and AED 171.5 per gram, respectively, at 9 am local time.

Furthermore, on a global scale, the spot gold price experienced a 0.3% decline, reaching $1,842.34 per ounce by 9:45 am UAE time. This decline occurred as traders closely monitored a critical US inflation report while preparing for upcoming job market data releases.

Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, expressed the sentiment that gold's performance seems burdened, likening it to being tied to a stone and cast into the sea.

"The price of an ounce now sits below $1,950. While oversold market conditions suggest an impending pause and correction, the attractiveness of US yields poses a challenge. A potential decline in yields could make stocks more appealing, leaving limited room for gold to stage a comeback," Ozkardeskaya stated.

In this volatile economic environment, gold's future trajectory remains uncertain, with various factors influencing its performance in the global markets.