Dubai: Gold prices have dropped back from their $1,900 an ounce plus levels – but not by much.
Early on Thursday, gold was trading at $1,895, and seemed to have the momentum to claw back to $1,900 and above. On Wednesday, the price was hovering around $1,905 and briefly shot up to $1,912. Market watchers seem to think that gold still has enough of a momentum to test the $1,940 levels.
The highest point for gold this was on January 4, at $1,943. On Thursday, the Dubai Gold Price was at Dh216 a gram - only Dh5 lower than its year-to-date peak of Dh221.
Not surprisingly, recent increases have ensured UAE shoppers keep well away from any buying. But $1,900 plus levels could see some gold holders in the UAE to sell, making use of the high price and pocket the difference.
$188.41an ounceThe increase in gold prices over the last 12 months
“Summer’s always a time when residents typically have a few choices to make about their spending,” said a jewellery retailer. “As happened last year, travel to the Subcontinent could be severely curtailed during June-September, given the COVID-19 crises there. Only essential travel will happen.
“Even then, gold at $1,900 levels will be an incentive for holders to sell some of it.”