• Home
• /
• UAE
• /
• Markets

Dubai: Gold prices rally continues, rise to new high

22K surpassed Dh300 per gram for the first time during the day

Gold prices jumped to an all-time high in Dubai on Thursday evening as 22K surpassed Dh300 per gram for the first time during the day.

According to Dubai Jewellery Group data, the 24K variant of the yellow metal jumped to Dh325.75 per gram on Thursday at 6 pm, up from Dh323.75 per gram at the close of the markets on Wednesday.

Among the other variants, 22K was trading at Dh301.5 per gram. Similarly, 22K and 18K also rose to Dh292.0 and Dh250.25 per gram, respectively, on Thursday evening.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

Globally, gold was trading at $2,690.14 per ounce, up 0.6 per cent at 6.20 pm UAE time.

Vijay Valecha, Chief Investment Officer, Century Financial, said gold rose ahead of closely watched economic reports like industrial production, retail sales and jobless figures. “Rate-cut optimism and central bank purchases are driving the rally. Additionally, gold-backed ETFs are on track for a fifth monthly expansion in October, marking the longest stretch of inflows since 2020,” he said.

“The US Dollar Index has strengthened in recent days, propelled by resilient economic reports and improving odds of a Trump victory. However, this hasn’t deterred gold from scaling to new heights as investors adjust their portfolios in anticipation of the upcoming US election, now less than three weeks away. Given the distinct economic risks associated with each candidate, gold could potentially remain supported regardless of the outcome,” he added.

Dilin Wu, research strategist at Pepperstone, said gold bulls are gaining strength. Prices hit all-time highs in most G10 currencies and hovered just below historical peaks against the US dollar.

“This surge reflects real demand for gold rather than just currency dynamics. I believe the $2,700 level is well within reach before the end of October. Uncertainty surrounding the US economic outlook continues to drive up gold prices. With initial jobless claims exceeding expectations and Federal Reserve Governor Christopher Waller warning that hurricanes and strikes could reduce October’s nonfarm payrolls by up to 100,000, the risk of missteps in future Fed rate hikes has increased.

“Coupled with a massive $1.8 trillion US deficit, these factors have intensified concerns over the economic trajectory, pushing investors toward gold as a safe haven amid rising volatility and unclear monetary policy,” said Wu.

In the absence of significant geopolitical developments, she said three factors will be pivotal for gold’s trajectory.

“First is US retail sales and the upcoming speeches from Fed officials. If retail sales fall short of the expected 0.3 per cent month-over-month increase, perhaps to 0 per cent, and the Fed's stance on rate cuts remains ambiguous, this could provide a further boost for gold bulls. Second is the pricing of the US election. With Trump's rising odds, the ‘Trump trade’ favouring a stronger dollar could weigh on gold, with support anticipated around $2,660. Finally, China’s economic outlook plays a significant role,” she said.

ALSO READ:

• Dubai: 22K gold crosses Dh300 per gram for the first time as prices hit new all-time high

• Discounts, lower making charges: Why tourists visit Dubai to buy gold during Diwali