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Gold has immediately felt the upward pull from the Ukraine-Russia border situation. It is trading at $1,878 an ounce levels early on Tuesday (February 15). Image Credit: Gulf News Archive

Dubai: UAE’s gold shoppers have the best opportunity to make use of their asset, with the Dubai Gold Rate gaining Dh2 a gram to Dh213.75. This is the highest point gold has touched in the year to date, with bullion prices continuing to rise for a second day because of its safe haven status.

Unless there is some respite along the Ukraine-Russia border and worries ease that it will not slip into a full-mode conflict, gold will keep feeling the upward pull. This is then the time to make use of the situation and book a neat return from selling part of the gold holdings.

In the last 10 days, the Dubai Gold Rate has shot up by Dh8 a gram. 

According to jewellery retailers, UAE shoppers are playing it smart. “The impression is gold could be getting closer to $1,900 an ounce if the tensions flare up,” said a retailer. “That could mean a further Dh2 increase in 22K prices to about Dh215 or more. That will be the level when we can expect UAE gold buyers to turn into sellers. Or at least make some heavy gold or jewellery exchanges.”

Direct dent on tourist buying

Gold’s upward rush has caught everyone at the retail end unawares. December and January sales jewellery sales were heavily driven by tourist buyers, but since February that has dropped significantly because of the gold price spike.