As gold prices rose by 27 per cent last year, demand for gold jewellery in the UAE fell by around 13 per cent
Spot gold was down 0.3 per cent at $3,027.90 an ounce as of 0331 GMT, after dropping over 1 per cent earlier in the session to its lowest
The fall in prices is significant for UAE residents, where gold plays a key role in savings and investments
Gold has gained nearly 22 per cent so far this year with geopolitical tensions and uncertainty created by the upcoming US elections
Enthusiasm over a likely interest rate cut by the US Federal Reserve in September propelled bullion to an all-time high of $2,509.65 on August 16
While oil prices rose over 1 per cent on Monday in muted trade, gold hit a record high of $2,449.89 last week, but has shed more than $100 since then
Spot gold was up 0.6 per cent at $2,345.56 per ounce, in early trade on Thursday
Bullion has hit record highs in each session for over a week over data from the US economy
Gold rebounded from seven-month lows hit on Friday, but its upside remained capped by strong US economic data
Bullion ended 1.3 per cent lower on Tuesday after the consumer-price index figures were released
Bullion has mainly fluctuated between $1,700 an ounce and $1,720 in September after several months of declines
Higher rates weigh on non-interest bearing bullion
Bullion just capped a fourth straight week of gains, the longest such run in almost a year
Gold climbed as the dollar and bond yields retreated, with investors assessing US-China tensions and an apparent hawkish turn from the Federal Reserve
The gold price decline in recent months has come as the US central bank started its hiking cycle
Investors continue to seek a store of value amid the uncertainty
The crisis in Europe is disrupting flows of energy, grains and metals
Bullion fell last year in its biggest annual decline since 2015
The global economic recovery has piled pressure on bullion this year
Bullion is set to post the first monthly gain since July after a run of losses prompted by the development of effective coronavirus vaccines
Bullion has surged 16 per cent this year as the spread of the virus curbed economic growth