Dubai: Gold prices rise to record high on Diwali day

Gold prices in Dubai continued to set new record highs on Thursday, the day of the Indian festival of Diwali, as 22K jumped above Dh312 per gram at the opening of the markets.

According to Dubai Jewellery Group data, 24K prices rose one dirham to Dh337.25 per gram at 9am UAE time compared to last night’s close of Dh336.25 per gram. Among the other variants, 22K, 21K and 18K were selling at Dh312.25, Dh302.25 and 18K at Dh259 per gram.

Spot gold was trading at $2,783.11 per ounce at 9.10am UAE time.

On Monday, gold barely touching $2,790 an ounce, while December Comex futures broke above $2,800 for the first time.

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Gold’s gains come as demand for gold accelerates amid political and economic uncertainty and still-high levels of geopolitical tension.

The World Gold Council’s Q3 Gold Trends Report showed that global demand grew by more than 5 per cent year-on-year to over 1,300 tons in the third quarter, with demand value exceeding $100 billion for the first time. This growth in demand for the second consecutive quarter was driven by increased investment demand, a recovery in jewellery consumption growth, and the return of physical gold ETFs to accumulate bullion for the first time after nine consecutive quarters of selling.

“In the Middle East, with the approach of the presidential elections in the US, we are witnessing increasing momentum around ceasefire talks, whether in Lebanon or Gaza. This is not the first time, as it was preceded by many previous attempts regarding Gaza, which the US administration said at the time that an agreement was close to being reached, but those negotiations followed only escalated the conflict to become a regional war,” said Samer Hasn, senior market analyst at XS.com.