Dubai gold price's going up-down - what should shoppers do?

Dubai: The Dubai gold price remains stuck in the Dh368-Dh372 a gram range, leaving shoppers disappointed that there has been no decisive break towards the Dh360 mark so far.

There’s been a dip in shopper activity over this week as many buyers switch to ‘let’s wait’ mindset on their purchases. “The mood seems to be one of shoppers preferring to conserve cash for the next big gold price drop,” said a retailer.

That makes sense because in a matter of 24 hours over recent days, the Dubai gold price has either dropped or risen by Dh2-Dh3 on average. “Shoppers don’t like to be caught in a position where they pay at Dh372 a gram, for instance, and then 48 hours later see the price has changed to Dh367/Dh368. Those gold shoppers who seek value are particular about every dirham they can save on a purchase.”

On their part, UAE gold retailers are throwing every promotion they can offer into the mix. But based on trends this week, shopper response is getting muted.

"It's probably because a lot of residents are already on their holidays," said a jeweller. "A few of them had confirmed purchases before their trips, but ended up not buying any jewellery before they left."

Some regular customers have also been trying to convince their jewellers to allow them to exit from the 1-month price lock in they had entered when the local gold rate had dropped to Dh365. They went for the lock in thinking gold was heading for more drops.

When that didn't happen, these shoppers now want the jewellers to book them for a monthly instalment scheme, where at the end of 12 months, they pick up gold related to their advance payments.

Early today, gold's back to firming up, at $3,318 an ounce after going down to $3,290 levels for most of yesterday.