Gold prices remained stable during the opening of markets in Dubai on Tuesday, following significant gains the previous day. According to the Dubai Jewellery Group, 24K gold opened at Dh331 per gram, while 22K, 21K, and 18K were priced at Dh306.5, Dh296.75, and Dh254.5 per gram, respectively. The yellow metal experienced a Dh1.5 per gram increase on Monday, as global prices maintained an upward trend above $2,700 per ounce. As of Tuesday morning, spot gold was trading at $2,734.11 per ounce, marking a 0.46% rise at 9.10am UAE time.
This year, gold has seen a notable rally, fueled by geopolitical tensions in the Middle East, increased demand from China, and interest rate cuts by the US Federal Reserve. Over the past year, gold has appreciated by 37.5%. Michael Brown, a senior research strategist at Pepperstone, noted that gold reached a new record high, continuing its upward trajectory above $2,700 an ounce. Brown commented, "The rally remains perplexing, as traditional drivers of gold are pointing in the opposite direction. However, given the current bullish momentum, it would be unwise to bet against this trend."
Recent uncertainty surrounding the US elections has also driven investors towards the safe-haven metal. Brown further explained, "Fundamentally, there are few differences between the two candidates. The most notable difference lies in regulatory policies—Trump favors de-regulation, while Harris supports stronger regulation, contingent on the composition of Congress. Both candidates appear to align closely on fiscal and monetary policies. Consequently, in the FX and FI sectors, it’s challenging to foresee a prolonged shift in outlook regardless of who wins the White House. The theme of 'US outperformance' is likely to persist for the foreseeable future."
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