Dubai’s gold market witnessed a continued rise in prices, with 22K gold reaching an unprecedented Dh309 per gram on October 29, 2024. The 24K variant climbed to Dh334.75 per gram, while the 21K and 18K categories hit Dh300 and Dh257, respectively. This spike mirrors global trends, as the spot gold price rose to $2,761.8 per ounce, indicating a 0.69% increase. Analysts suggest that the surge defies usual economic conditions, as it persists despite rising US Treasury yields and marginally eased geopolitical tensions. Dilin Wu, a research strategist, noted that the traditional inverse relationship between gold prices and interest rates has shifted, with market factors like US debt concerns and strategic trading around the US presidential race influencing the current rally.
Wu further highlighted the impact of the fiscal deficit reaching $1.8 trillion, emphasizing that anticipated low interest rates could continue to favor gold investments. With economic pressures mounting, the allure of gold as a secure asset remains high, especially as the US debt crisis casts a shadow on financial stability, driving prices to record highs.
