Photo: Reuters
Gold prices surged to a fresh record high at the start of trading in Dubai on Wednesday morning, with 22K crossing Dh311 per gram. By 9am UAE time, the 24K variant was trading at Dh336.5 per gram, an increase of Dh1.75 per gram from the previous night's close. Among the other precious metal variants, 22K rose by Dh2 per gram to Dh311.75. Meanwhile, 21K and 18K climbed to Dh301.75 and Dh258.5 per gram, respectively.
The surge in prices coincides with a period when many residents and visitors purchase gold and precious metal jewelry during the Indian festivals of Dewali and Dhanteras. These record-high prices may, however, curb demand for yellow metal jewelry.
As previously reported by Khaleej Times, shoppers are already opting for cheaper 18K variants amid the record-high prices. Spot gold was trading at $2,779.31 per ounce, up 0.38% at 9.07am UAE time.
The precious metal's rally is attributed to US election jitters and concerns over geopolitical tensions in the Middle East. "With voting scheduled for November 5, national and swing state polls indicate a close race between Republican candidate Donald Trump and Democratic Vice President Kamala Harris. However, Trump has recently gained momentum in prediction markets, suggesting heightened election interest and potentially influencing market sentiment as election day approaches," said Mohamed Hashad, chief market strategist at Noor Capital.
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