In pictures: After a drastic drop in UAE gold prices, are UAE shoppers going into a weekend buying spree?

In the UAE, today's 22K gold price is Dh209.25/gram, down by over Dh7

Last updated: September 29, 2023 | 09:27

2 MIN READ

1/18

International gold prices dropped by another $10 to $1,864 an ounce, and possibly setting up hectic buying interest today and over the rest of the weekend in the UAE.

2/18

Since September 18, the bullion prices are down by around $70 on an ounce basis, and it’s all showing up in the UAE Gold Rate.

3/18

In the UAE, the first retail gold price for the day has been set at Dh209.25 a gram on 22K, down by more than Dh7 in recent days, in what jewellery retailers say are levels that UAE gold shoppers can be comfortable with.

4/18

With resident shoppers, ‘It would be more of exchanging the gold they have rather than buying new,” said a jeweller. “Frankly, no one would have been expecting such a steep decline from the $1,930 levels that were there just last week.”

5/18

In value terms, exchanging the old for new would represent the easiest option for shoppers this weekend.

6/18

All they need to keep in mind – if they are exchanging gold they bought 5 years ago, they would be benefiting to the tune of around $670 on an ounce basis. (And 1 ounce is 28 grams.)

7/18

Since Thursday (September 28) evening, tourist shoppers were already doing the math in their minds and making up a good part of the buying at Dubai Gold Souq and elsewhere.

8/18

Tourist buying represents the best potential scenario for gold retailers. There’s less of gold exchanges involved, with these shoppers preferring to buy new.

9/18

Tourist buying represents the best potential scenario for gold retailers. There’s less of gold exchanges involved, with these shoppers preferring to buy new.

10/18

Each time gold seemed headed for lower price levels – and staying there – global events have conspired to push them back to $1,900 and over. There is no guarantee, at least for now, that this will not happen again.

11/18

So, if UAE resident shoppers do have plans for a round or two of gold buys, they should be taking those decisions fast.

12/18

Chances are that jewellery retailers will bring forward their Diwali and Dhanteras promotions forward. If that happens, then the cost of buying new will come lower for shoppers now.

13/18

Or they can just call in to lock their prices at current levels, and buy closer to Diwali. If prices go up, they are protected.

14/18

If prices were to drop further, it would mean they only need to pay the lower rate.

15/18

If the last 3 years have shown anything, it’s that gold prices are kind of sticking to those elevated levels. Compared to the last 10 years, even anything above $1,800 an ounce would be on the higher side.

16/18

But with gold, there’s always a payoff. Plus, all the emotional aspects related to laying hands on a piece of finely crafted jewellery.

17/18

That moment can be priceless.

18/18

This weekend will show whether UAE gold shoppers are making those decisions with their hearts or cool calculations...

Get the latest news and updates straight to your inbox