Dubai: Gold prices rise to new record high; 22K reaches Dh308.75

Spot gold was trading at $2,756.48 per ounce, up 0.5 per cent at 9.15 am UAE time

Waheed Abbas

Published: Tue 29 Oct 2024, 9:36 AM

Gold prices rose to a new record high in Dubai on Tuesday morning as global prices hiked due to uncertainty around US elections pushing investors to the safe-haven metal.

The 24K variant of the yellow metal touched Dh333.5 per gram on Tuesday morning, up from Dh331.75 at the close of markets on Monday. Among the other variants, 22K, 21K and 18K opened higher at Dh308.75, Dh299.0 and Dh256.25 per gram, respectively.

The prices have peaked at a time when many shoppers purchase gold and precious metal jewellery during the Indian festivals of Diwali and Dhanteras.

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As reported by Khaleej Times, shoppers are switching to the more affordable variant of 18K-made jewellery amidst record-high prices.

Spot gold was trading at $2,756.48 per ounce, up 0.5 per cent at 9.15 am UAE time.

Rania Gule, a senior market analyst at XS.com, said gold faced significant challenges between $2,750 and $2,720, struggling to gain upward momentum while remaining below the supply zone of $2,748 to $2,750.

“Safe-haven demand fuelled by ongoing tensions in the Middle East and concerns over the upcoming US elections served as catalysts for a potential rise in price. This coincided with a modest decline of the US dollar from its highest levels since July, which provided some support to gold, despite several other factors suggesting continued pressure on prices,” she said.

Expectations surrounding the potential for interest rate cuts by the Federal Reserve remain a source of concern in the market. Additionally, worries about deficit spending after the US elections are pushing US Treasury yields higher.

“These factors, combined with a generally positive risk tone, keep the price of gold inadequately supported. Traders are also hesitant ahead of key US macroeconomic data this week, including the third-quarter GDP reading, the Personal Consumption Expenditures (PCE) index, and the Non-Farm Payrolls (NFP) report, which increases uncertainty in the market,” said Gule.

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