Dubai: Gold Prices Jump Over Dh5 Per Gram, Hit New All-Time High

Gold maintained its relentless upward trend in Dubai on Tuesday as prices jumped over Dh5 per gram to a new all-time high at the opening of the markets.

At 9am UAE time, 24K jumped Dh5.25 per gram to Dh466 per gram compared to Dh460.75 per gram at the close of the markets on Monday. Similarly, 22K jumped Dh4.5 per gram to Dh431.25 per gram. Among the other variants, 21K and 18K opened at Dh413.75 and Dh354.5 per gram, respectively.

Spot gold was trading at $3,864.39 per ounce, up nearly one per cent. The precious metal is poised for its best month in 14 years, as fears of a potential US government shutdown and growing expectations of further US interest rate cuts boosted demand for the safe-haven metal.

Ahmad Assiri, market strategist at Pepperstone, said if Congress fails to pass a last-minute funding bill, non-essential agencies would close and a wide range of public services would be disrupted.

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“For investors, the concern is not the bureaucracy itself, but the blackout of official economic data and statistical releases that serve as the compass for both policymakers and markets. History offers useful reference points. The US has faced shutdowns before, most notably in 2013, which lasted 16 days over disputes tied to the Affordable Care Act, and the record 35-day shutdown of 2018-2019. While most standoffs end within two weeks, the 2018 episode demonstrated how prolonged deadlock can materially dent growth as the government spending freeze, with the Congressional Budget Office estimating GDP losses of roughly $11 billion during that period,” said Assiri.

In commodities, he added that the yellow metal surged through fresh record highs above 3,850 dollars an ounce, supported not only by speculative flows but also by structural demand.

“Selling gold at this juncture is proving costly, with profit-taking swiftly absorbed by demand. Short-term fatigue may emerge, but the ceiling on further gains appears fragile, reinforcing gold's position,” added Assiri.

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