UAE gold price drops Dh10 a gram over weekend - shoppers lock in for 'Akshaya Trithiya'

Dubai: Quite a few shoppers in the UAE were able to make full use of a ‘small window of opportunity’ when gold prices suddenly dropped during the latter-half of Friday (April 4), when the UAE gold rate fell by Dh10 a gram from the day before. On Friday evening, the UAE gold rate closed the week at Dh338.25 a gram for 22K against Thursday’s Dh348.25.

“There were a few purchases, but the majority of UAE resident shoppers decided to make pre-bookings for ‘Akshaya Trithiya’ on April 30,” said a jewellery retailer. “This meant they could lock in at Dh338.25 when they buy on April 30.

“After the UAE gold rate kept pushing towards Dh350, these shoppers were not willing to take a chance and did the pre-booking.” (Akshaya Trithiya is an Indian festival where buying gold or other precious stones is part of the tradition. For UAE’s gold business, it’s also been one of the peak days for gold shopping, irrespective of where prices are.)

Currently, the price of a gram of 22K gold in India is RS8,309. (A dirham gets Rs23,30.)

There was a lot of 'relief' buying too over the weekend. In fact, in one particular stretch, gold prices had actually dropped by over $100 an ounce in the global commodities market.

According to another retailer, there was heavy pre-booking over the weekend. Also, “Gold exchange transactions remained largely unaffected, indicating UAE customers are choosing to retain gold, reflecting their confidence in its long-term value and stability as a reliable asset,” said Shamlal Ahamed, Managing Director of International Operations at Malabar Gold & Diamonds.

But there were also legions of potential gold buyers who felt that prices would drop further today (April 7) and then they could make the price lock-in for Akshaya Trithiya.

It’s been an extremely volatile few days for gold and the global markets since the announcement by President Trump of sweeping import duties on all its trading partners. Global markets had seen trillions of dollars in paper wealth being wiped out, and this week looks like to no different to what happened ever since the Trump announcement on April 2.

The highest gold has reached is $3,167 an ounce earlier this month.

But earlier today, gold was trading at under $3,000, slipping to $2,980 an ounce.

"When I saw those prices, I thought the UAE gold trade was in for one of the biggest pre-booking sprees ahead of 'Akshaya Trithiya'," said a jeweller. "But that drop didn't last, in fact it was happening in too short a time for this to even reflect on the UAE gold rate."

In the commodities market, gold is trading at $3,033 after reaching $3,047 at one point.

Shoppers can hope for another gold price break before Akshaya Trithiya like the Dh10 drop they got over the last weekend.

“While price fluctuations may influence buying patterns, the demand remains strong, especially with the upcoming festive and wedding season,” said Ramesh Kalyanaraman, Executive Director at Kalyan Jewellers.  

“We are offering advance booking options to help them secure their gold at current rates, protecting them from further price hikes. In addition, we provide special offers such as free gold coins and reduced making charges.

“While global economic factors drive price movements, historically, the market has seen corrections.”