Gold breaks above $1,300 an ounce amid US poll jitters

Dubai: Gold continued its ascent to break above the $1,300 level on Thursday, as anxiety over the US presidential elections continued to dampen investors’ appetite for risk.

As of 1:44pm, 24-karat gold was retailing in Dubai at Dh158.25 per gram, up by Dh3.75 since Monday, October 31.

Also on Thursday, spot gold touched a high of $1,307.76 an ounce, the highest since October 4, before settling at $1,301.63, according to Reuters.

The precious metal strengthened ahead of the results of the US polls and despite speculations that the Federal Reserve could tighten monetary policy before the end of the year.

“Gold was back in demand for the first time in four weeks. Buyers returned as the yellow metal continued to build a base at $1,250 an ounce,” said Ole Hansen of Saxo Bank.

A win for presidential candidate Donald Trump is expected to hurt the US dollar and further boost the precious metal.

“Gold prices have increased due to increased concerns over US elections outcome and weak US dollar. Forecasting commodity prices in today’s uncertain environment is almost impossible, [but] I expect gold price to remain very volatile till the election results,” said Karim Merchant, group CEO and managing director of Pure Gold Jewellers, told Gulf News.

Gold demand from the Indian market also surged recently during the celebration of Diwali, with local retailers reporting 10 per cent to 20 per cent increase in jewellery sales.

According to Merchant, the response on Dhanteras, the first day of the Indian festival, was better than expected for the industry.

“It provided a much-needed break for the [retail sector] that has faced a long challenging year,” he added. “On average, I would say the industry experienced between 10 per cent and 20 per cent increase in sales when compared to last year’s Dhanteras or at most, the same as last year, indicating an uplift in consumer sentiment.”

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