Dubai gold prices drop Dh10.75 in month, offering Diwali relief
By Dubai Currents Staff1 min read
Gold prices in Dubai fell on Wednesday morning, extending losses that have seen the precious metal shed Dh10.75 over the past month, providing investors with some respite ahead of the Diwali festival.
At the market open on Wednesday, the 24K variant of gold was trading at Dh486.5 per gram, down from Dh489 at Tuesday’s close. The decline represents a drop of Dh2.5 so far this week.
Other gold variants trade lower
The other variants also saw declines. As of Wednesday morning, 22K gold was trading at Dh450.5 per gram, 21K at Dh432, 18K at Dh370.25, and 14K at Dh288.75.
Global market movements
Internationally, spot gold was down 0.66 percent at $4,034.46 per ounce as of 9:40am UAE time on Wednesday. Silver also declined, dropping 0.98 percent to trade at $53.92 per ounce.
Analyst comments on gold’s outlook
Ross Maxwell, Chief Strategy Officer of VT Markets, said the yellow metal continues to benefit from structural demand, including central bank purchases and geopolitical uncertainty.
With the US midterm elections approaching in November, Maxwell explained that a divided Congress could create a more supportive environment for gold if reduced expectations of fiscal expansion lead to lower yields and a weaker US dollar. “This could strengthen Gold’s outlook beyond temporary safe-haven demand surrounding Election Day,” he said.
However, Maxwell added that persistent inflation and a hawkish Federal Reserve could keep real yields elevated, limiting gold’s recovery. “A more convincing bullish signal would emerge if Gold establishes higher highs while real Treasury yields and DXY decline.”
He noted that the US midterm elections on 3 November could become a significant catalyst for financial markets as investors assess how a potential shift in congressional control might influence fiscal policy, inflation and interest rates. The biggest market reaction, Maxwell said, may not come from which party wins, but from how the result compares with what investors have already anticipated.
