Gold prices in Dubai have surged to a record high, driven by geopolitical tensions in the Middle East and uncertainty surrounding the US elections. Investors are examining the gold price in Dubai and trusting it as a safe-haven asset amid these turbulent times. The price of 22K gold has increased to AED308.75 per gram, while 21K, and 18K gold have also risen in price.
”The uncertainty surrounding the outcome and the contrasting policies of both candidates have driven traders towards risk-averse strategies. Safe-haven demand has increased, with gold standing out as a preferred choice as election day approaches. Fears were heightened after an attempted drone attack on Israeli Prime Minister Benjamin Netanyahu, along with reports of Israel planning strikes against Hamas, Hezbollah, and potentially Iran,” Hashad added.
Safe-Haven Demand Bolsters Gold Against Dollar Strength
Gold prices have remained strong, even as the US dollar has strengthened. While a stronger dollar usually negatively impacts gold, investors are buying gold as a safe haven, which is helping to offset this effect. This is especially true as there’s uncertainty about future interest rate cuts by the Federal Reserve.
