Gold prices were steady at the opening of markets in Dubai on Tuesday after strong gains yesterday.

The Dubai Jewellery Group data showed 24K opening at Dh331 per gram while 22K, 21K and 18K were selling at Dh306.5, Dh296.75 and Dh254.5 per gram, respectively.

The yellow metal rose Dh1.5 per gram on Monday as global prices stayed above $2,700 per ounce.

On Tuesday morning, spot gold was trading at $2,734.11 per ounce, up 0.46 per cent at 9.10am UAE time.

The yellow metal has been rallying this year, driven by geopolitical tensions in the Middle East, demand from China and interest rate cuts by the US Federal Reserve. Gold has gained 37.5 per cent in the past one year.

Michael Brown, senior research strategist at Pepperstone, said gold traded to a fresh record high, extending gains north of $2,700 an ounce. “The rally remains a headscratcher, with traditional drivers of the yellow metal continuing to point in the opposite direction, though present bullish momentum is fierce enough that I’d not be tempted to fade the move just yet,” said Brown.

Lately, uncertainty surrounding the US elections has also pushed investors to the safe-haven metal.

“One must also consider that, fundamentally, there are relatively few differences between the two candidates. The most significant difference centres on regulation (Trump = de-regulation, Harris = stronger regulation, pending the makeup of Congress), with views on both fiscal and monetary policy seemingly closely aligned. As a result, particularly in the FX and FI arenas, it’s tough to imagine a prolonged change in the outlook of whoever wins the White House, with ‘US outperformance’ set to remain the running theme for some time to come,” Brown added.