Dubai: The value of gold may have edged up higher recently, but consumers in the UAE will continue to enjoy relatively low jewellery prices across the souks and malls.
Spot gold inched up by 0.1 per cent to $1,281.70 an ounce by 9:37am on Tuesday, as the precious metal regained its lustre following US President Donald Trump’s latest comments. Trump had threatened to increase the tariffs on Chinese products, prompting investors to resort to safe-haven assets.
Despite the latest uptick, 24-karat (24k) gold jewellery in the UAE can still be had at Dh155.50 per gram as of 11am on Tuesday, which is approximately Dh2 cheaper from a month ago. Last April 2, the price of 24K stood at Dh157 per gram.
Other jewellery pieces are also retailing at below peak rates, with 22K priced at Dh146 and 21K and 18K selling for Dh139.25 and Dh119.50, respectively. The price of 24K had surged to its highest level at Dh162.50 per gram in February this year.
While there is no assurance that the precious metal will remain below Dh160 per gram for a long time, analysts are split on where prices are headed this week.
The latest Kitco gold survey showed that about a third (33 per cent) of respondents in Wall Street are betting on the bullion to shine further this week, while about the same number (33 per cent) are expecting a price decline.
“Main street” professionals included in the survey are also split, with 43 per cent saying they’re bullish about gold, while 44 per cent are expecting a negative performance this week.
Trump warned on Sunday of a tariff increase on Chinese goods.
“There are significant catalysts for gold with the escalations on the trade-war front yesterday, but it is surprising we have not seen a significant follow through,” Stephen Innes, head of trading and market strategy, SPI Asset Management, was quoted by Reuters as saying.