Gold drops sharply to under 1,800/oz and UAE shoppers are ready for bumper weekend

Dubai: Gold prices have dropped sharply to $1,789 an ounce levels, setting up a possible window for shoppers in the UAE to finally have another try at picking up their favourite metal. Gold dropped by $16/oz in the last 24 hours and more than $60 over the last 30 days.

It was mid-May that gold was last at under $1,800 levels, that too briefly. For the better of these two months, it was stuck at over $1,850.

The Dubai Gold Rate tpp has dropped from to Dh205 from last night’s close of Dh206.75 a gram for 22K. Today’s first rate will be available by 9am. Shoppers willing to wait will likely book at today’s prices and then see whether gold can dip further and make their eventual purchase cheaper.

But there is also a lot of pent up demand in the market and that could see an outflow in the next 48 hours. “The holiday travel season has already started and many UAE residents were waiting to see if gold prices would turn fabvourable,” said Shamlal Ahamed, Director of International Operations at Malabar Gold & Diamonds. “Today, it has, which is why the gold and jewellery trade can see some significant activity over the weekend.”

India hikes gold duty

For many UAE residents planning a trip back home, there could be another incentive to buy gold and sell in India. India has reportedly raised the customs duty on gold by 5 per cent, further widening the cost of buying gold in the UAE and in India. This sets up ideal opportunities for those planning a few purchases here and then finding a buyer in India.