Eid Al Adha: Should UAE gold shoppers wait for early June offers?

Dubai: The Dubai gold rate is back in the Dh370 plus range, which if the price holds is what shoppers will be facing if they have any plans to buy this weekend. It is trading at Dh371.5 a gram for 22K, as sentiment behind the safe haven asset builds with each bit of negative news around the US economy and dollar.

“Most likely, many shoppers would have already made up their minds to wait until start of Eid Al Adha promotions June 2,” said a jewellery retailer. “At the very least, they will wait to see what the trends are from Monday onwards. Paying Dh370 now when as recently as May 15 the Dubai gold rate was Dh359 may be difficult for shoppers to get over.”

Industry sources agree that with promotions starting next week, it offers potential shoppers the best cushion to absorb some of the higher cost of gold.

In the commodities market, gold is trading at around $3,330 an ounce levels, up by $30 so far. Again, worries over the US economy has been the primary fuel for the latest run up in gold prices.