In a statement, he said, “Though historically, demand for gold has surged significantly during this period, analysts predict that this year’s demand maybe 15-20% lower than usual. In response, many jewels have begun offering discounts and reducing making charges, which is atypical for this time of year. However, amid the high prices of gold, the demand for 18-carat gold is increasing faster than that of 24-carat. Currently, the price of 24-carat gold is at AED 331.25, whereas 18-carat gold is at AED 254.5; in the past week, the prices of 24-carat and 18-carat gold have risen by 1.688% and 1.698%. Though the differential is minor, it highlights the demand difference.”
Valecha also remarked that gold prices are expected to increase mainly owing to the uncertainty surrounding the US presidential election.
“As of October 24, 2024, Trump leads Harris in key battle states that will determine the presidential race, and investors can be seen to be seeking safe-haven demand over the same as a Trump presidency could support gold as it might raise trade tensions and widen the budget deficit,” he added.