Gold Prices Reach Record Highs in Dubai

Gold prices in Dubai hit a new record on Monday evening, as the precious metal's price surged by 1.5 dirhams on the first trading day of the week. The 24-carat gold stood at 319 dirhams per gram on Monday evening, marking a total increase of 16.75 dirhams per gram this month.

Among other gold types, the 22-carat gold is nearing the 300 dirhams per gram mark, trading at 295.25 dirhams per gram on Monday evening. Meanwhile, 21 and 18-carat gold were sold at 295.25 and 285.75 dirhams per gram, respectively.

Globally, gold was trading at $2,629.13 per ounce, reflecting a 0.34 percent increase by 7 p.m. local time in the United Arab Emirates.

Wael Makarem, strategic head of financial markets at Exness, stated that the gold market might remain on a positive trajectory as conditions continue to be favorable.

"Gold has benefited from the prospect of a softer monetary policy in the United States and other major economies. The expectations of significant interest rate cuts and further easing by the Federal Reserve could continue to drive prices up in the medium term. The uncertainty about the strength of the U.S. and other major economies, following a period of high interest rates, could still lead investors to be cautious and increase demand for gold," he said.

Makarem believes the precious metal could find further support if central banks continue purchasing the asset in large volumes.

"Additionally, the geopolitical tensions in the Middle East and Europe, whose end remains uncertain, could steer investors towards gold and other safe-haven assets. In the short term, uncertainty surrounding the U.S. election results might raise gold prices, although some market volatility is expected as traders react to each new economic data release," Makarem added.