Sharp decline of Dh54.25 per gram drives strong buying interest in jewellery and bullion
Dubai: Gold prices recorded a new and significant decline at the end of last week, with values ranging between 4.75 and 8 dirhams per gram for different carats, compared to prices at the end of the previous week, according to price indicators announced in Dubai and Sharjah. The decline continues for the fourth week in a row, bringing the total drop in the price of a gram of gold to 54.25 dirhams over four weeks.
Officials from gold and jewellery outlets said that the markets have witnessed a recovery and growth in demand for gold products, whether jewellery or bullion, supported by the continued significant decline in the price of the yellow metal. They noted that sales are expected to continue to recover, especially as long as prices remain at similarly low levels.
Gold prices
Meanwhile, the price of a gram of 24-carat gold reached AED 492.75, a decrease of AED 8 compared to the end of the previous week. The price of a gram of 22-carat gold was AED 456.25, a decrease of AED 7.5. The price of a gram of 21-carat gold reached AED 437.5, a decrease of AED 7.25. The price of a gram of 18-carat gold reached AED 375, a decrease of AED 6.25. The price of a gram of 14-carat gold reached AED 292.5, a decrease of AED 4.75.
Ahmed Aneizan, Deputy CEO of Salem Al-Shuaibi Jewellery Company, said that “the significant decline in gold prices has prompted many customers to buy gold products in general, whether jewellery of various types or bullion, with increased awareness and confidence among customers that the yellow metal is expected to rise again in the coming periods, which increases confidence in gold products for savings as a store of value, in addition to their usual uses for adornment.”
He added that “changes in global markets have increased the chances of a decline in the price of the yellow metal during recent periods, which has provided more opportunities for traders to buy their gold requirements. Demand is expected to continue in the markets when price indicators stabilise at similar rates.”
Hossam El-Din Abdel Rahim, Sales Manager at BTC Gold Trading Company, said that “the markets are currently witnessing demand from consumer families to purchase gold products as gifts, to take advantage of the low price levels of the yellow metal. This has had positive effects on the markets, contributing to a recovery in overall gold sales, especially bullion, which, in its various forms, has taken the largest share of demand during the current period, with many customers turning to such products for saving or investment purposes in light of the low prices.”
Jay Dehkan, Director of Dehkan Gold and Jewellery Trading Company, said that “the continued decline in gold prices at significant rates has greatly contributed to the recovery of sales in the gold markets, with many traders viewing these prices as an opportunity to buy, whether jewellery products or bullion in general.” He noted that “the pace of demand in the markets for gold products is expected to continue to increase in the coming days.”
