Dubai: On Wednesday evening, suggested retail rates for selling gold touched a five-year high of Dh171.50 for a gram of 22K gold (which is used in most retail jewellery). 24K gold has reached a whopping price of Dh182.50.
This is after a Dh1.50 jump today alone (for 22K gold) since this morning.
The increased prices come following a wave of steading rising prices regionally and globally. When the prices hit Dh162.50 per gram on the first day of August, UAE shoppers were staying well away from the precious metal. Less than a week later, the price has gone up by Dh9 per gram.
With Value Added Tax (VAT) at 5 per cent, retail buyers will pay over Dh180 for a gram of 22K gold, not taking into account making charges and other fees added to any final product.
Dh 180 per gramincluding VAT at 5% (Dh171.50 + Dh8.575) for 22K
When the expected demand hike before the summer break didn't happen, local retailers blamed the rising prices for the fall. Further rises will dampen gold and jewellery demand in the UAE, market sources said then.
The suggested retail rates at 6pm are as follows: 24K - Dh182.50 per gram; 22K - Dh171.50; 21K - Dh163.75 and 18K - Dh140.25.
Gold futures rallied above $1,500 (Dh5509) an ounce on sustained demand for the traditional haven as the U.S.-China trade war festers, global growth slows and central banks around the world ease monetary policy.
"Gold is serving its traditional role as a safe-haven asset," said Wayne Gordon, executive director for commodities and foreign exchange at UBS Group AG's wealth management unit. Under the bank's risk case, marked by a further escalation of the trade fight, prices could go as high as $1,600, he said.