Dubai: The Dubai Gold Rate has once again dropped below Dh200 a gram for 22K, opening up a slight window of opportunity for jewellery retailers in the UAE. The rate is currently at Dh199.50, while in the past 10 days, the price had even hit Dh205.25.
“Each time the local rate drops under Dh200, the calls start to come in,” said a retailer. “We hope to see shoppers turning up this evening at the stores, mostly Indian shoppers because of the festivals next month. A lot of shoppers with an intent to buy will wait to see if there will be further drops.”
In the global commodity markets, gold is at $1,756 an ounce, having shed more than $20 in the last 48 hours.
“In technical terms, the daily chart shows that gold is likely to retreat to $1,600-1,650/oz if the US dollar continues to strengthen. Investors can be expected to show up within this range, and they will push gold back to $2,300-2,500 over the long term. But this will take time…”
- Alpari Group, which is an FX and metals brokerage
It was on July 7 that gold dipped below Dh200 after months of high gold prices, and which accelerated after the Russia-Ukraine conflict was set off late February. In between, worries about inflation too played a part in sustaining gold prices. But between July 7 to July 29, gold remained under Dh200, dropping to Dh192 levels at some point.
This ensured July was one of the best performing months for the UAE gold and jewellery sector, with many shoppers picking up a few grams ahead of their holidays. “We are hopeful that resident shoppers will bring forward their plans to add to their gold holdings,” said the retailer. “There had been some potential buyers enquiring for wedding-related purchases in the last two days, once it became clear that gold prices were losing momentum.
“We are still hopeful that these big-ticket purchases will still be made now that gold is under Dh200 again.”