UAE shoppers return as gold prices drop $220 in just 14 days
UAE gold shoppers start to make a strong comeback as gold prices lose sparkle
Dubai: Gold prices have now dropped by a whopping $227 in just 15 days to trade at $2,561 an ounce levels. Early today, the asset has lost more of its price sparkle, dropping by $50 at around 07:35am.
In the UAE, the local gold rate for a gram of 22k is at Dh292.75, well below the all-time high of Dh311 on October 31.
Shoppers are responding to all the favourable price movements. Some retailers say they are seeing more shoppers, residents and tourists, as well as enquiries in the last 7 days than in the whole of October.
At the start of this month, it was hard to believe that gold prices were going to drop to these levels this fast. On October 30, the price was a new peak of $2,790 and it felt November could see bullion reach out to ever higher ranges around $2850 and – at a stretch - even $2,900.
Then Donald Trump’s win happened, and a lot has changed. Gold analysts are still not sure what levels gold will reach in the coming days and weeks. No one is betting on a sudden gold price surge taking place soon.
There is talk about a possible $2,450-$2,550 range in the coming days.
"There is a buzz around gold buying again - one can clearly feel it in the Dubai Gold Souq," said a jeweller. "Thankfully, the price crash coincides with the peak UAE tourist season, and we have seen a noticeable increase in shopper numbers. In these 14 days, the mood has changed. Hope that gold's current price trend will continue..."