Dubai: UAE’s gold shoppers have got some reason to cheer on Friday, with the Dubai Gold Rate dropping below Dh200 a gram for 22K. The Rate is currently at Dh199.50 (Saturday morning) against the Dh203.25 just over a day earlier – but will this be enough to persuade them to buy at the dip?
The chances are that the pressure on prices will remain, at least during the week. Even then, if prices soften to about Dh190 a gram, that could convince UAE shoppers to pitch in and pick a few grams.
“Chances are that shoppers will wait for a few hours today to see the trends in the international bullion market,” said a senior official at a leading jewellery retailer. “These days, shoppers take decisions when rates are around Dh190-195.”
The Dubai Gold Rate was fixed at Dh200.25 later in the day on Friday after bullion prices inched up to $1,762 levels by 11am.
The lowest point gold rates have touched locally was the Dh191.75 on March 31. The highest in the year to date was the Dh217 on June 1.
Early on Friday, in the global bullion market, the per gold ounce price is down by nearly $40 to $1,756. “Gold buying in the UAE remains subdued – for a majority of value-seeking shoppers, buying at Dh200 a gram plus is a luxury,” the retailer added. “What they have done in recent months is wait for gold prices to dip.
“In late March, there was much hope that prices would keep falling, but that dip stalled at the Dh191 mark. And left a whole lot of prospective shoppers disappointed.”
Sure, right since early 2020, gold has been an asset that has held its own, while much of the investor attention focussed on the booming stock markets and the rally in Bitcoin and other crypto assets.
But high prices meant shoppers were turning up at jewellery showrooms less frequently. Last year, jewellery sales in the UAE touched a low point. There has been some improvement this year, but nothing that has sustained. Each push past the $1,800 an ounce mark has kept shoppers on the side-line.
The return of tourists, especially those from India, will be the biggest break UAE gold retailers can hope for in the coming weeks. “If gold rates remain in the sub-Dh200 a gram mark, we should score with the tourists,” another retailer added. “Dubai’s Gold Souq and jewellery shops in the UAE are waiting for their arrival in force.”