Shoppers are having no part to play as gold keeps heading higher... it's now at $1,722 an ounce and with enough prospects to go further. Image Credit: Reuters

Dubai: Gold has now pushed its way well above the $1,700 an ounce mark and is now holding strong at $1,714, as part of a rally that has continued since early Monday. One will need to go back to September 11, 2012, when gold has been priced higher than today’s level.

It had been in the $1,722 level earlier on Tuesday.

But UAE shoppers will only be giving a casual look to the prices, with jewellery retail outlets still shut as part of the wider restrictions on commercial activity to counter the COVID-19 spread.

“The showrooms remain closed, and all campaigns related to “Akshaya Trithiya” later this month are on hold,” said Cyriac Varghese, General Manager at Sky Jewellery. “In the current circumstances we cannot assure anything to customers. Everything will have to wait until there’s clarity on when showrooms can open.”

This year’s Akshaya Trithiya is on April 26, and regarded by Indian shoppers as an ideal time to buy gold or other precious items. Most of the leading jewellery retailers had been running price lock-in campaigns, whereby a shopper could purchase on April 26 at a lower per gram price of gold.

The Dubai Gold Price for 22K was at Dh190 a gram on Tuesday morning.

A counting game

That gold will see value gains as concerns mount over the global economy was a foregone conclusion. But in recent weeks, each rally was followed by a dip, and it was felt gold was losing some of its lustre as a safe haven asset.

But in recent days, it has been able to reassert itself, and the $1,720 an ounce plus levels attest to that. Now, market watchers are even looking to a point closer to $1,800 or even past that. The last time gold had entered that range was in late 2011.

According to Anil Dhanak, Managing Director at Kanz Jewels, "There are far higher priorities than gold prices - it's something that all of us are learning under the COVID-19 shadow. But normalcy will return - the only focus now from a business perspective is find ways to reduce costs. All else can wait."

Anil Dhanak of Kanz Jewels