Dubai: Gold prices jump to new record high ahead of Diwali; 22K crosses Dh311 per gram

Prices are peaking at a time when a large number of residents and visitors buy precious metal jewellery during Indian festivals

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Photo: Reuters
by

Waheed Abbas

Published: Wed 30 Oct 2024, 9:22 AM

Last updated: Wed 30 Oct 2024, 8:18 PM

Gold prices jumped to a new record high at the opening of markets in Dubai on Wednesday morning with 22K crossing Dh311 per gram.

At 9am UAE time, the 24K variant opened at Dh336.5 per gram, up by Dh1.75 per gram from last night’s close. Prices later fell a tad to Dh336.25 at the day's close.

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Among the other precious metal variants, 22K jumped to Dh311.25. The 21K and 18K rose to Dh301.25 and Dh258.25 per gram, respectively

[Editor's Note: For real-time gold rates, click on the widget below or visit KT's dedicated Trading News page here.]

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Prices are peaking at a time when a large number of residents and visitors buy gold and precious metal jewellery during the Indian festivals of Dewali and Dhanteras. These record-high prices could dampen the demand for yellow metal jewellery.

As reported by Khaleej Times earlier, shoppers are already shifting towards cheaper variants of 18K amidst record-high prices.

Spot gold was trading at $2,779.31 per ounce, up 0.38 per cent at 9.07am UAE time.

The precious metal has been rallying due to US election jitters and concerns around geopolitical tension in the Middle East.

“With voting set for November 5, national and swing state polling shows a tight race between Republican candidate Donald Trump and Democratic Vice President Kamala Harris. However, Trump has recently gained ground in prediction markets, signalling increased election interest and potentially influencing market sentiment as election day nears,” said Mohamed Hashad, chief market strategist, Noor Capital.

Historically, in the past 10 years, the metal has generally declined by about 0.94% 2 days before the festival, said Vijay Valecha, Chief Investment Officer, Century Financial.

"From a technical standpoint, gold is showing strong bullish momentum above the pivot at 2778. Additionally, the yellow metal’s recent break from the symmetrical triangle pattern is expected to fuel the momentum further. The metal has immediate resistance at the level of 2791 and support at 2770," Valecha said.

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Waheed Abbas

Published: Wed 30 Oct 2024, 9:22 AM

Last updated: Wed 30 Oct 2024, 8:18 PM

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