Gold Prices Climb as Investors Brace for Election
- Gulf Markets
The ADX General is advancing slightly to 9,312.08 in Abu Dhabi. International Holding Co. PJSC contributed the most to the index gain, increasing 0.4%. Bank of Sharjah had the largest increase, rising 2.9%.
The DFM General Index is falling 0.4% at 4,467.84 in Dubai. Emirates NBD Bank PJSC contributed the most to the index decline, decreasing 2.0%. Watania International Holding PJSC had the largest drop, falling 3.0%.
The Tadawul All Share Index opened 0.1% higher, climbing 15.92 to 12,054.59, as stocks gain for the third straight day in Riyadh. Acwa Power Co. contributed the most to the index gain, increasing 1.8%. Development Works Food Co. had the largest increase, rising 3.9%.
Oil steadied, after four days of declines, as traders weighed potential risks to production in the Middle East, while another China economic briefing left investors underwhelmed.
Brent held above $74 a barrel, after losing almost 7% over the prior four sessions, while West Texas Intermediate neared $71. After advancing in early trade, Brent pared gains, in line with other commodities, during a housing-policy brief in China in which announced stimulus fell short of market expectations.
Both benchmarks slid earlier in the week after reports that Israel would avoid strikes on Iran’s crude facilities in retaliation for an Oct. 1 attack. In the Middle East, US stealth bombers hit weapons storage sites linked to Iran-backed Houthi rebels in Yemen, Israel stepped up air strikes on Lebanon, and an oil leak near a key terminal in Iran heightened attention on the OPEC member’s export facilities.
GoldGood surpassed last month’s peak by a few cents as it rose 0.5% to $2,685.74 ahead of closely watched economic reports like industrial production, retail sales and jobless figures. The precious metal is up 1% so far this week and 30% year-to-date. Rate-cut optimism and central bank purchases are driving the rally. Additionally, gold-backed ETFs are on track for a fifth monthly expansion in October, marking the longest stretch of inflows since 2020.
The U.S. Dollar Index has strengthened in recent days, propelled by resilient economic reports and improving odds of a Trump victory. However, this hasn’t deterred gold from scaling to new heights as investors adjust their portfolios in anticipation of the upcoming U.S. election, now less than three weeks away. Given the distinct economic risks associated with each candidate, gold could potentially remain supported regardless of the outcome.
Gold is up 0.29% at $2,681 with support at $2,678 and $2,677, with immediate resistance at $2,685. Gold prices in the UAE today are as follows:
24 Carat – AED 324.25
22 Carat – AED 300.25
21 Carat – AED 290.75
18 Carat – AED 249.25
Last Updated on 3 months by News Desk 1
