At the beginning of the week, the rates of precious metals experienced a significant increase due to the ongoing conflict between Israel and Palestine. On Wednesday morning, gold prices in the UAE experienced a slight drop after a two-day rally, with 24K trading at Dh225.25 per gram compared to Dh225.5 on Tuesday, according to data from the Dubai Jewellery Group. Other karats were also trading at slightly lower prices. Spot gold was trading at $1,859.24 per ounce as of 9.48 am UAE time, down 0.03 per cent. The surge in Treasury yields prompted several US Federal Reserve officials to suggest that further rate hikes may not be necessary, resulting in a one-week high for precious metal prices as the US dollar weakened. Senior analyst at Swissquote Bank, Ipek Ozkardeskaya, noted that the FOMC minutes due today will remind investors that rates will remain higher for longer if inflation remains above target. Despite the dovish Fed talk and safe haven inflows into US treasuries following mounting tensions in the Middle East, the risks in US yields remain tilted to the upside, with the US 2-year yield remaining 50bp above the upper range of the Fed funds policy target.