Stock Dubai gold shopping Covid
The next 12 days represent a vital phase for UAE jewellery retailers, with Eid sales and then the 'Akshaya Trithiya'. Should shoppers be locking in at current prices and buy later? Image Credit: Virendra Saklani/Gulf News

Dubai: Gold prices have slipped to $1,916 an ounce early on Monday, bringing the Dubai Gold Rate down to under Dh220 a gram for 22K for the first time in four weeks. Will this be the incentive for UAE gold shoppers to pick up a few grams for Eid?

The Dubai Gold Rate is at Dh218.75 now, which means it is down Dh8.75 since touching Dh226.75 a gram on April 18. For shoppers to commit, they might want to see a further dip. “The Dubai Gold Rate at Dh215-Dh220 would be a relative bargain given how gold prices have fared in these two months,” said a jewellery retailer. “Most shoppers will wait until mid-week to see if prices are likely to drop again to $1,900/$1,910.” (For more info on gold and currency happenings, check out Gulf News.)

If prices do drop closer to $1,900, this could help with some decent demand in the next 10 days, for the Eid festivities and the ‘Akshaya Trithiya’ gold buying festival on May 6. Plus, tourists too will be more willing to purchase at those levels. (What’s been particularly hard for jewellery retailers has been the absence of both resident and tourist shoppers since late February.)

The lock-in option

UAE jewellery retailers are out with their Eid promotions, many of which offer gold coins for purchases that cross set levels. They are hoping that this way they can get average transactions in these 10 days to be in the Dh5,000 plus range.

The other option retailers are offering is a price lock-in, if shoppers are confident about current levels will hold – or at least will not rise. If prices do drop further, they get that price. But the sale must go ahead in 30 days.