Gold prices continue to surge due to demand

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Muscat- Gold prices rose to a record high Tuesday, driven by increased demand for the metal as a haven.

Gold prices in Oman on Wednesday are:

24 Carat – RO34.900

22 Carat – RO32.750

18 Carat – RO25.700

Global gold price continues to increase amid ongoing uncertainty with the upcoming US elections. Additionally, there is significant demand for gold investment funds, alongside persisting geopolitical tensions in the Middle East.

The price of an ounce of gold rose by 0.6% Tuesday, reaching a high of $2,738 per ounce, after opening at $2,719 per ounce, and is currently trading at $2,734 per ounce, according to Gold Bullion.

US elections

Gold prices gained in Asian trade on Tuesday, stabilizing just below their recent record highs as traders sought safe havens due to growing uncertainty surrounding the upcoming U.S. presidential election. The anticipation of a tight race between Donald Trump and Kamala Harris has pushed investors towards safer assets like gold, bolstering its appeal despite a stronger U.S. dollar, according to a report by Noor Capital

Polls indicate a close competition in the US presidential election, which is set for two weeks from now. The uncertainty surrounding the outcome and the contrasting policies of both candidates have driven traders towards risk-averse strategies. Safe-haven demand has increased, with gold standing out as a preferred choice as election day approaches.

Markets seem to be targeting the $2,800 per ounce level, as political uncertainty is expected to persist as the election nears.

Adding to the risk-averse sentiment, geopolitical concerns, particularly the escalating conflict in the Middle East, have further boosted demand for safe assets. Fears were heightened after an attempted drone attack on Israeli Prime Minister Benjamin Netanyahu, along with reports of Israel planning strikes against Hamas, Hezbollah, and Iran.

Despite a stronger dollar, which reached near three-month highs this week, gold and other precious metals remained resilient. The dollar’s rise was fueled by expectations that the Federal Reserve will reduce interest rates at a slower pace, which generally weighs on metals markets. However, the safe-haven demand has helped offset these negative factors for gold, the report said.

Gold prices surged on Monday to reach a historic high of $2,740 per ounce before closing lower at $2,719 per ounce. This marks a 32.6% increase in gold prices since the start of 2024, according to reports.

Gold prices in India

Gold prices in India witnessed a sharp rally as 22K gold prices today jumped by Rs 400 to Rs 73,400/10 grams and 100 grams of 22-carat yellow metal prices surged by Rs 4000 to Rs 7,34,000.

The 24k gold prices today crossed the 80k mark as prices jumped to Rs 80,070/10 grams after the gain of Rs 430. 100 grams of 24-carat metal prices today rose by Rs 4300 to Rs 8,00,700.

Gold rose in spot transactions by 0.7 percent, recording $2,739.81 per ounce, after recording a record level of $2,744.08 earlier in the session.

US gold futures also rose by 0.6 percent, reaching $2,754.30 per ounce.