24K gold prices neared Dh500 per gram on Thursday morning, with bullion climbing to a two-week high following the US midterm elections.
Gold prices in Dubai surged by more than Dh11 per gram to a two-week high on Thursday morning, with 24K gold approaching the Dh500 mark.
Data from the Dubai Jewellery Group showed 24K gold trading at Dh498.75 per gram at the market open on Thursday, up from Dh487.50 on Wednesday.
Other categories also recorded sharp gains, with 22K, 21K, 18K and 14K gold priced at Dh461.75, Dh442.75, Dh379.50 and Dh296 per gram, respectively.
Spot gold climbed 5.3 per cent, or $211, to $4,141 an ounce, while silver gained 6.8 per cent to $53.11 an ounce. Gold had recently slipped below $4,000 an ounce.
The rally was driven by a weaker US dollar and declining US Treasury yields following a Democratic wave in the US midterm elections.
Prices also rose ahead of India’s major festivals of Dhanteras on Friday, November 6, and Diwali on Sunday, November 8.
Dhanteras, considered one of the most auspicious occasions in the Indian calendar, is traditionally associated with buying gold, silver and jewellery as symbols of prosperity, good fortune and new beginnings.
The festival typically boosts demand across Dubai and the wider UAE jewellery market, with Indian expatriates and other residents visiting stores to buy gold coins, bars, necklaces and other ornaments.
Dubai, popularly known as the City of Gold, remains a major shopping destination during the festive season, offering a wide range of jewellery designs and competitive prices. Retailers also roll out special promotions to attract shoppers, making the period an important one for the UAE’s gold trade.
Linh Tran, market analyst at XS.com, said gold’s long-term fundamentals remained largely intact.
“It is just necessary to distinguish between factors that help maintain demand for holding gold and drivers strong enough to push prices higher.”.
According to the World Gold Council, central banks bought approximately 321 tonnes of gold on a net basis in the third quarter of 2026, marking a 42 per cent increase compared with the same period last year. This took total net purchases during the first nine months of the year to 675 tonnes.
Gold remains an important component of central bank reserves, particularly for countries looking to diversify their holdings and reduce dependence on specific assets or currencies, including the US dollar.
Tran said demand for gold accumulation had remained resilient despite elevated prices. However, she cautioned against drawing firm conclusions about the metal’s future price direction, noting that the overall figures also included estimates of transactions that had not been publicly disclosed.
“It can be seen that demand for accumulation has been maintained despite high gold prices. But the aggregate data also include estimates for transactions that have not been disclosed, so this cannot yet be used to make overly firm claims about the possibility of price increases,” she added.
