Dubai:  Gold fans in the UAE are in for some fantastic deals on jewellery with the price of the bullion dropping to its lowest level in five years, experts told Gulf News.

The price of gold slumped to as low as $1,088.05 an ounce, its lowest since more than five years ago or March 2010 .

According to the data provided by Dubai Gold and Jewellery Group, the retail price of 24k gold jewellery dropped from Dh145 last month to Dh 134, which would translate into a saving of Dh11 per gram.

Retail price for 22k gold jewellery has become cheaper, dropping from Dh137.75 to Dh127.50. For 21k gold, the retail price declined from Dh132 to Dh122.25.

Experts could not say if the low prices will sustain over the next few days, but one thing is certain, fans of the yellow metal can expect some bargains.

“I think we first need to see where the price is stabilizing. However, one can already say that the bargain hunters in the Middle East will get fantastic deals on jewellery,” Rolf Schneebeli, CEO of Gold Services AG, told Gulf News.

Karim Merchant, group CEO and managing director, Pure Gold Jewellers, which operates a number of jewellery shops in the UAE, said the price decline has resulted in a "resurgence in the demand for gold."

"This trend is expected to continue as long as gold remains at this level, as consumers see this as an excellent opportunity to invest.  Gold sales has recently been buoyant because of the price elasticity and this underlines the trend," Merchant told Gulf News.

Tawhid Abdullah, chairman, Dubai Gold and Jewellery Group, attributed the price slump to the crisis in Greece and the strengthening of the US dollar.

“Gold price has fallen to the lowest in the last five years and it may be attributed to several factors such as Greece crisis, surging dollar value. Decline in gold price usually drives retail jewellery demand and it has been the trend over the years,” Abdullah told Gulf News.

“However, the sharp decline will translate into incremental sales only if it sustains for a few days. At the moment, the gold price is fluctuating constantly. We are yet to see if the sudden decline has encouraged retail activity substantially. It is too early to draw any conclusion."