The 24-karat variety stood at Dh488.75 per gram at 8.39 am, down Dh7.75 from Dh496.50 on Sunday. The decline of about 1.6% took the rate below Dh490 for the first time since the start of July.The crowd-favourite 22-karat variety dropped by Dh7.25 to Dh452.50 per gram, compared with Dh459.75 during the previous session.Monday’s decline left 24-karat gold Dh14.25 below its July high of Dh503, while 22-karat gold was Dh13.50 below its monthly peak of Dh466.Prices reverse early July gainsGold began the month at Dh489.75 for 24-karat and Dh453.50 for 22-karat before climbing steadily during the opening days.The 24-karat rate crossed Dh500 on July 3 and reached Dh503 on July 4 and July 5, while the 22-karat variety rose to Dh466. Prices then retreated, with 24-karat gold falling to Dh490 on July 8 before recovering to Dh497.25 the following day.The recovery proved brief, as rates moved between Dh493.75 and Dh496.50 over the weekend before Monday’s decline pushed both varieties below their July 1 opening levels.Weekend strikes pressure precious metalsThe fall in Dubai followed a wider sell-off in precious metals after the US and Iran exchanged fresh strikes over the weekend, pushing energy prices higher and renewing concerns about inflation and interest rates.Spot gold declined as much as 1.6% to trade near $4,050 an ounce after losing 1.4% during the previous week. Silver fell as much as 3.1% on Monday.Confusion also surrounded the status of the Strait of Hormuz after the US rejected an Iranian statement that the waterway would remain closed “until further notice.”US Central Command said American forces had carried out a fourth round of strikes within a week following an attack on a container ship.Interest-rate concerns returnHigher energy prices have increased concerns that inflation could remain difficult to control, leaving the US Federal Reserve with less room to reduce borrowing costs.Minutes from the Fed’s June meeting showed that a few policymakers believed there was a case for raising rates, although officials ultimately supported keeping them unchanged.Higher interest rates tend to weigh on gold because the metal does not pay interest. The yield on the rate-sensitive two-year US Treasury note climbed to its highest level since February 2025, while the dollar strengthened and made precious metals more expensive for buyers using other currencies.Gold has fallen by more than 20% since the Iran war began in late February. Profit-taking ended a three-year rally and briefly pushed the metal below $4,000 an ounce for the first time since November.- With inputs from Bloomberg. Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.