Stock Dubai gold shopping Covid
The word is out that this is turning out to be one of the best times to pick gold. And in the UAE, shoppers are doing just that. Image Credit: Virendra Saklani/Gulf News

Dubai: UAE residents on holiday overseas are calling in and booking their next gold purchases with local jewellery retailers here as the Dubai Gold Rate drops below Dh200 a gram for 22K. Their plan is to make the purchase on their return, and retailers are only too willing to accommodate their regular clients.

The Dubai Gold Rate ended Wednesday (July 7) at Dh197.25 a gram and is now at Dh198.50. Early today, prices have firmed up slightly to $1,746 levels. Briefly, it had even dipped to $1,733. Gold has been at $1,810 levels just a few days ago.

By booking, they get to lock the price of gold at under Dh200 a gram. And between now and when they buy, if prices are to drop further, they get the lower rate. (The previous lowest for gold since the start of the year was Dh201.)

“Everyone is back in the gold shops of the UAE, even those residents who have not been regular buyers in the past,” said a jewellery retailer. “And those who are not in the country because of the summer breaks are making bookings, with the intent to buy in the next month or two max. Even with consumers turning increasingly cautious about any excess spending, they are not letting go of this opportunity to add to their gold holdings.”

Market sources say that the way gold prices have behaved in the last two years, it has reinforced its status as a safe bet to have. Comparisons have also been drawn to how Bitcoin and other crypto assets are faring, which had in these two years drawn in a lot of buyers, especially among the younger demographic. Not any more, at least for now.

“We are seeing a lot of under 30’s checking out the collections at the stores, and what’s surprising, as fashion and as an asset,” said a retailer.

Dubai and its Summer Surprises

Jewellery outlets in Dubai are running promotions for the DSS, which has been the other incentive – apart from the price drop – to get people buying. Retailers report of some overseas shoppers flying in to buy their gold needs.

“What the last week has shown is that Dubai and the UAE is still the best place to buy gold and jewellery,” said the retailer. “All that was needed was for the bullion price to come down, which it has. If prices remain under $1,750 an ounce for a few days more, so much can be achieved.”