STOCK Dubai gold shopping
UAE's gold market takes a breather after a week of intense selling by consumers as they made use of prices hitting $2,050 levels. Image Credit: Ahmed Ramzan/Gulf News

Dubai: The great gold sell-off is over for UAE consumers. On Friday morning, gold prices dropped from the peaks of $2,040 an ounce plus to $1,978. And UAE’s gold and jewellery retailers are relieved.

“The only activity that was happening since Friday last was shoppers coming in to sell their gold, because the Dubai Gold Rate was well upwards of Dh230 a gram for 22K,” said a retailer. “If gold kept pushing towards $2,100, the sell-off for cash would have become more intense in the next few days. It would have been good for consumers, but not so for retailers.”

Even yesterday, there was heavy selling by those holding ample gold assets, with the local rate being Dh234.50 at one stage. There were those who felt they should wait for another week to sell, hoping gold will push past to the $2,100 mark. They will now be disappointed with the Friday freefall.

The Dubai Gold Rate on Thursday morning is Dh226 a gram, down from the Dh234.50 the day before.

Not in the mood to buy

It will be a while before shoppers get back to buying – after the wild ride gold has had in these two weeks, they will wait to see whether it settles back to $1,900 an ounce levels. Or, if they are in luck, drop further.

“With tourists, $1,900-$1,925 levels are encouraging levels,” said a retailer. “UAE residents may take bit longer – we are hoping late April or early May would see them return in full strength.” In the first week of May, the Eid holidays will be celebrated. Also, ‘Akshaya Trithiya’ is during this period, which is when Indians tend to buy gold.