Dubai:Gold has touched its highest point - $1,923 an ounce, surpassing the $1,921 from September 2011.
It’s now pushing towards $1,930, and right now, just about everyone is placing money on it easily hitting $2,000 an ounce in a matter of weeks.
Gold was at $1,519.50 an ounce on January, 2020.
All of these price spikes are happening despite shoppers, in the UAE and elsewhere, not going anywhere near jewellery stores in recent weeks. The only activity that is happening these days seems to be of UAE consumers with sizeable gold holdings selling off parts of it.
The Dubai Gold Price is currently at Dh219.75 a gram plus 5 per cent VAT.
“Now is a good time to realise the value of gold – just in the last 12 months, prices are up nearly $500 an ounce,” said a Dubai-based jeweler. “If we raise it to a five-year difference, anyone selling now would make an instant gain of plus $800 an ounce.” (One ounce equates to 28 grams.)
Just keep pushing
Most analysts favour gold prices scorching their way to new highs… and even going all the way to $2,000. At the start of this year, anyone talking about $2,000 by September would have his credentials questioned – now, some of the biggest luminaries in the global asset management business such as Mark Mobius are talking up gold’s chances.
UAE’s gold jewelllery retailers are responding to this run up in gold by offering straight out ‘discounts’ on older collections and more. It’s the first time discounts have been mentioned when it comes to selling jewellery, but these are exceptional circumstances, and gold retailers want to be seen as doing anything that will keep shoppers taking a look.