Dubai: Gold prices in Dubai opened lower on Wednesday morning after the 24-carat variant dropped by Dh2.5 (approx. ₹64.75) earlier this week and registered a total decline of Dh10.75 (approx. ₹278.50) over the past month, offering significant respite to investors and shoppers ahead of Diwali.

The 24K variant was priced at Dh486.5 (approx. ₹12,604) per gram at market open on Wednesday, falling from Dh489 (approx. ₹12,669) at Tuesday's close. Other purity grades also traded lower, with 22K recorded at Dh450.5 (approx. ₹11,672) per gram, 21K at Dh432 (approx. ₹11,193) per gram, 18K at Dh370.25 (approx. ₹9,593) per gram, and 14K at Dh288.75 (approx. ₹7,481) per gram.

In international markets, spot gold dipped by 0.66 per cent to $4,034.46 (approx. ₹1,04,534) per ounce as of 9.40 am UAE time. Silver also recorded a decline of 0.98 per cent, trading at $53.92 (approx. ₹1,397) per ounce.

Experts noted that the precious metal continues to benefit from structural demand drivers, such as sustained central bank acquisitions and ongoing geopolitical instability.

Looking ahead to the US midterm elections scheduled for November 3, Maxwell stated that a divided Congress might create a supportive environment for gold if reduced expectations of fiscal expansion result in lower Treasury yields and a weaker US Dollar. He remarked that such a dynamic could strengthen gold's trajectory beyond transient safe-haven buying linked to Election Day.

However, he cautioned that persistent inflation and a hawkish stance from the Federal Reserve could keep real yields elevated, thereby capping any recovery in gold prices. He added that a clearer bullish signal would require gold to establish higher highs alongside declining real Treasury yields and a lower US Dollar Index (DXY).

Maxwell further highlighted that the upcoming US midterm elections could serve as a major catalyst for financial markets, as investors evaluate how shifts in congressional power might impact fiscal policy, inflation and interest rate trajectories. He noted, however, that the most pronounced market reaction may stem from how the final results align with existing market expectations rather than which party wins control.