Diwali buying: UAE gold rate back to its lowest point - Dh185.75 a gram - this year

Dubai: The UAE gold rate is back to its lowest point of the year, at Dh185.75 a gram for 22K, after bullion prices dropped more than $20 to $1,624 an ounce levels in the international commodity market overnight.

But now, bullion prices are showing some recovery, to $1,633 and if the trend continues, this could reflect in the UAE gold rate by going up a dirham or so. “This is still shopper-friendly levels, and we are seeing tourists making some heavy purchases last evening and which will continue today,” said a jewellery retailer in Dubai. “The resident gold shoppers has not been as active, as they may have booked already for Diwali (which will be on October 24), or waiting to see if the pressure on gold process continue.”

Whatever be the case, this is turning out to be a good week for the UAE gold market. The local rate for 22K is the lowest compared to the Diwali phase in the last two years, by well over Dh10 a gram. And Diwali has always been one strong phase for jewellery retailers here. Even during 2020, with all that uncertainty around Covid and the Dh215.50 a gram price, resident shoppers still bought.

As far as prices go, these are still uncertain times for gold, with some analysts believing $1,620 and under as a strong possibility.