The decline in Dubai brought the 24K price down from Dh483 per gram. Other retail gold variants also opened lower: 22K at Dh443.75, 21K at Dh425.50, 18K at Dh364.75 and 14K at Dh284.50 per gram.

Global gold remains below $4,000

In international trading, spot gold was down 0.48% at $3,973.72 per ounce at 9:14am UAE time, remaining below $4,000 per ounce. Silver declined 1.21% to $51.37 per ounce.

Vijay Valecha, chief investment officer at Century Financial, described gold's brief recovery on Wednesday as a technical retracement and said investors were awaiting the next catalyst.

CME FedWatch data showed investors had placed a 90.8% probability on a rate increase at the US Federal Reserve's December 9 meeting. Valecha cited comments from Fed officials Michelle Bowman and Anna Paulson that inflation control remained a priority and that further rate increases could follow.

Valecha said higher interest rates increase the opportunity cost of holding bullion, which does not generate a yield, reducing its appeal. In his technical assessment, gold faces resistance at $4,068 per ounce, followed by $4,144 and $4,193, while support levels stand at $4,030 and $3,957. He said a move below $3,957 could expose $3,913 and $3,877, and maintained a bearish bias while gold trades below $4,144.