Dubai: Gold prices continue upward trend, 22K hits Dh309 per gram

Spot gold price rose to $2,761.8 per ounce, up 0.69 per cent at 6pm UAE time

Waheed Abbas

Published: Tue 29 Oct 2024, 6:14 PM

Last updated: Tue 29 Oct 2024, 7:10 PM

Gold prices continued to rally in Dubai on Tuesday evening with 22K rising to an all-time high of Dh309.0 per gram.

At 6pm UAE time, the 24K variant of the yellow metal rose to Dh334.75 per gram, up from Dh331.75 per gram at the close of the markets on Monday. While 22K, 21K and 18K reached Dh309.75, Dh300.0 and 18K at Dh257.0 per gram, respectively.

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Spot gold price rose to $2,761.8 per ounce, up 0.69 per cent at 6pm UAE time.

Dilin Wu, research strategist at Pepperstone, said gold has surged past $2,750, maintaining its strength despite rising US Treasury yields and a slight easing in geopolitical tensions.

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“Remarkably, while the ten-year real interest rate in the US has climbed from 1.5 per cent in early October to around 1.98 per cent, gold has still seen a significant increase of over $150 during the same period. This break from the traditional negative correlation between these assets indicates a significant shift in market dynamics,” said Wu.

“Currently, the driving force behind gold's ascent appears to be traders' positive bets on a potential Donald Trump victory, coupled with growing concerns over the escalating US debt crisis. The fiscal situation is alarming, with the deficit hitting $1.8 trillion for the fiscal year ending in September, accounting for around 6 per cent of GDP,” she added.

Moreover, Wu said the US Federal Reserve may be inclined to maintain low interest rates to support economic growth while grappling with rising debt levels. “This scenario reduces the opportunity cost of holding gold, making it increasingly attractive and further driving up its price.”

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