UAE gold climbs Dh11 as US vote weakens dollar

Dubai gold prices surged 2.42 percent on Wednesday, reaching above $4,025 per ounce. The dollar and US Treasury yields declined following early mid-term election results that favored Democrats. UAE prices mirrored the rally, with 24K gold rising to Dh484 per gram, or Dh11, from Dh473 the previous day. The 22K rate increased Dh10.25 to Dh448.25, while the 18K and 14K rates gained Dh8.75 and Dh6.50, respectively.

Midterm elections in the US are causing market uncertainty, as Democrats leading in early vote counts may lead to a more cautious approach from President Donald Trump in the coming years. Lower yields on US Treasury bonds, falling as early results favored Democrats, have positively impacted gold prices. Gold, which does not generate interest income, becomes more attractive when the dollar weakens, making it cheaper for international buyers.

The mixed signals surrounding US-Iran talks have further contributed to gold's volatility this week. Diplomats report that both nations are reviewing proposals to prevent a return to conflict. Oil prices, initially driven by tensions, have since eased as the White House signals a willingness to allow more time for negotiations. As energy prices fluctuate, the relationship between gold and crude oil continues to be inverse.

Analysts suggest that continued uncertainty and softer guidance from the Fed could help stabilize gold prices, allowing central bank demand to drive a recovery.