Eid offers: UAE gold price drop brings relief for shoppers this weekend

Dubai: Dh369.25 a gram – that’s what shoppers in the UAE need to pay for gold this Eid weekend after prices from levels of Dh378 seen earlier in the week. Even compared to last Thursday’s level, there is a saving of Dh4 in what has always traditionally been a busy period for gold and jewellery shopping in the UAE.

The Dubai gold rate for a gram of 24K too has dropped below Dh400 after a week of getting pushed higher. (The Saudi gold rate for a 22K gram is Dh384.)

From yesterday afternoon itself the trends were clear – gold prices were softening. “The only thought on everyone’s mind was whether it could slip to around Dh367/Dh368 before the global markets closed for the week,” said a jewellery retailer. “Even though it didn’t drop, I think many Eid shoppers will be comfortable with a price of Dh369.75.

“We believe the gold souq and jewellery stores elsewhere in the UAE will see brisk levels today and tomorrow. Far better than what it would have been if gold had been Dh370 plus.”

True, all through last week, shopper traffic had at gold stores were rated as extremely weak, with the Dh370 plus pricing the key factor. Some jewellers say shoppers could also have been waiting for Eid to start before heading back to the gold souq - but there is no denying Dh370 and above remains a major barrier for shoppers.

Gold and jewellery retailers are expecting a busy start to Saturday and Sunday, with sales picking up by the evening. Stores located within busy malls and hypermarkets also hope to benefit from the weekend shopper traffic.

All of these retailers agree that a gold rate below Dh370 was crucial - and that's exactly what they got. Now, 'it's up to the jewellers to make use of it through the Eid offers and discounts', said a trader. "The Dubai Gold Souq can expect heavy action in these two days."

The drop below Dh370 happened because of a sharp slide in bullion prices last evening, to $3,311 an ounce levels. That's after a $40 plus decline.

"Gold and the Tesla stock are in decline for the moment," said an analyst. "Whether it would mean gold could back to $3,00 levels doesn't look a strong possibility - at least for the moment."