Dubai City of Gold
Gold in the UAE has just got pricier by Dh10 a gram. Image Credit: Gulf News Archives

Dubai: There is no respite for gold shoppers in the UAE – in one week they have seen prices increase by Dh10 a gram, with the Dubai gold rate for Monday set at Dh163.5. Add in the VAT element, and the final tally for the shopper would come to Dh171.67.

The latest increase reflect the continued strength in international bullion prices, with gold trading at $1,431.27 an ounce in early trading. Many in the local gold and jewellery trade had hoped for some correction to set in after gold breached the $1,400 level in recent days.

“That’s typically been the case whenever gold had tested the $1,400 point in recent times – but, unfortunately, from a shoppers’ perspective, it has not happened so far this time,” said Cyriac Varghese, General Manager at Sky Jewellery.

According to market feedback, demand for jewellery was muted in the UAE over the weekend, as shoppers were still trying to digest the sudden spike in prices on Thursday last (June 20). That day saw the price shoot up by Dh4.75 a gram from the overnight Dh153.

If the current rate holds up, or even gets higher, this will have a material impact on overall gold demand in the first six months of the year.