Dubai: Gold prices plunge in early trade as all eyes on US elections

Gold prices fell over Dh1 at the opening of the markets in Dubai on Tuesday.

At 9am UAE time, the 24K variant of the precious metal fell Dh1.5 to Dh331.0 per gram compared to last night’s close of Dh332.5. Among the other variants, 22K, 21K and 18K opened lower at Dh306.5, Dh296.75 and Dh254.5 per gram, respectively.

during the Indian festival of Diwali, but now they have dropped globally and in Dubai, bringing relief to shoppers.

Globally, spot gold was trading at $2,735.7 per ounce, down 0.07 per cent at 9.15am UAE time.

Wael Makarem, financial markets strategist lead at Exness, said markets are geared up for the closely watched US presidential election and the Federal Reserve’s policy decision.

“Recent opinion polls show a tight race between Vice President Kamala Harris and former President Donald Trump. The uncertainty could lead to volatility in the next few days as traders react to the election’s results. At the same time, gold could continue to see support if the Federal Reserve keeps cutting rates, although expectations retracted in regard to the pace of monetary policy easing,” said Makarem.

The Fed is expected to announce a 25 basis point interest rate cut this week, following a more significant half-percentage point reduction in September. Markets are also anticipating another quarter-point cut in December.

“Ongoing tensions in the Middle East could further contribute to the safe-haven appeal of gold, supporting prices along with persistent demand from central banks and economic uncertainties,” he added.