Gold Price In Dubai Hits All-Time High; 22K Inches AED308.75

Alifiya H Ujjainwala
Alifiya H Ujjainwala

Gold prices shoot in the UAE

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.

Prices rose during Asian trading on Tuesday, Mohamed Hashad, Chief Market Strategist, Noor Capital, said, “The anticipation of a tight race between Donald Trump and Kamala Harris has pushed investors towards safer assets like gold, bolstering its appeal despite a stronger US dollar. Spot gold rose 0.5% to $2,734.38 an ounce, while gold futures increased 0.4% to $2,748.40 an ounce, just shy of the record spot price of over $2,740 set on Monday.”
Polls further indicate a close competition in the US presidential election, which is set for two weeks from now.

”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.