US Election Impact on Market Shifts Could Affect UAE Purchasing Power

UAE, 19 November, 2024 : The recent drop in gold prices and EUR/USD exchange rates following the US election signals a shift toward US-centric policies that could influence global capital flows, affecting the UAE’s purchasing power and inflation.  

Bas Kooijman, CEO and Asset Manager at DHF Capital, noted that the UAE’s alignment with the dollar positions it to capitalize on these shifts, but businesses and investors must remain mindful of the effects of US fiscal policies. Following the election, gold prices fell from $2,740 to $2,701, and the EUR/USD rate dropped from 1.093 to 1.073. Gold prices have since dipped below $2,600.  

Kooijman highlighted that fluctuations in the US economy reverberate through the UAE due to the dirham’s peg to the dollar. While gold faces near-term risks, the political and economic uncertainty may drive long-term demand.  

Looking ahead, the UAE’s real GDP is projected to grow 4.1% in 2025, reflecting resilience and growth prospects despite market volatility. Kooijman’s expertise in portfolio diversification has delivered strong returns, with investors seeing an average ROI of 110% over the past five years.  

Source : www.zawya.com