Dubai: At Dh192 for a gram of 22K, UAE gold prices have dropped close to the lowest point this year, allowing shoppers another chance to buy or book their next purchase. The lowest point this year was the Dh191.75 a gram on July 21.
This comes after international bullion prices dropped, some would say surprisingly, to below $1,700 an ounce and remaining under pressure in trading today (September 15). “Gold under $1,700 has been a rare occurrence for most of this year – and even in 2021,” said a jewellery retailer. “And each time, global worries over inflation and rate hikes immediately lifted gold past $1,700 and to $1,720-$1,730 range.
“We will definitely see buying or booking today – the Diwali spending has been brought forward by resident shoppers. With the way gold prices are behaving, there is no knowing what tomorrow might bring. It’s that kind of market now.”
Gold is currently at $1,686 an ounce.
The latest fall in gold prices gives a good opportunity to jewellery buyers to get the best price of the last 2 years. We are giving customers a chance to protect their purchases at this lowest price. If the price falls again, the customer will get a further advantage on their purchase date
- Abdul Salam K. P., Vice-Chairman of Malabar Gold & Diamonds
UAE shoppers were disappointed recently after prices dropped to around Dh193 on a recent Friday. Those who had planned to buy/book over the weekend were left disappointed after gold went through a price surge later that day.
The current Dh192 level is thus the biggest break they are getting since. “A majority of our Diwali shoppers will make the booking today – and they can get a lower rate if prices drop any further,” said the retailer. “At the same time, they are cushioned against any sudden rise.”
This year's Diwali is on October 22.
Is this what's in store this time too? Watch whether it touches $1,680.
"The key level is $1,680 and a significant break of this could be painful, with it having been a floor over the last couple of years," said Craig Erlam, Senior Market Analyst at Oanda. "We could then see some support around $1,660 but at that point, the damage will have been done."