Gold prices jumped by more than Dh11 per gram to a two-week high on Thursday morning, with 24K gold inching closer to Dh500 per gram.
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 per gram on Wednesday.
Similarly, 22K, 21K, 18K and 14K gold prices rose to Dh461.75, Dh442.75, Dh379.50 and Dh296 per gram, respectively.
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Spot gold rose 5.3 per cent, or $211, to $4,141 an ounce, while silver jumped 6.8 per cent to $53.11 an ounce. Gold had recently fallen below $4,000 an ounce.
Gold rallied on the back of a weaker US dollar and lower US Treasury yields following a Democratic wave in the midterm elections.
Prices climbed ahead of the Indian festivals of Dhanteras, which falls on Friday, November 6, and Diwali, which will be celebrated on Sunday, November 8.
Dhanteras, 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 brings a seasonal boost to Dubai and the wider UAE’s gold and jewellery market, with Indian expatriates and other residents visiting jewellery stores to purchase gold coins, bars, necklaces and other ornaments.
Dubai, known as the City of Gold, remains a popular destination for Dhanteras shopping, offering a wide selection of jewellery designs, competitive pricing and tax-efficient shopping. Retailers typically attract customers with special promotions, making the festival an important period for the UAE’s gold trade.
Linh Tran, market analyst at XS.com, said gold’s long-term foundations had not completely disappeared.
“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 purchased approximately 321 tonnes of gold on a net basis in the third quarter of 2026, up 42 per cent from the same period last year. This brought total purchases over the first nine months of the year to 675 tonnes.
The precious metal plays an important role in reserve portfolios when countries seek to reduce their dependence on a group of assets or a particular currency, such as the US dollar.
“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.
Source: Khaleej Times