The gold and jewelry industry in Dubai is reportedly experiencing a decline in sales as residents are avoiding making any purchases. The decrease in demand is due to the recent hike in gold prices, which hit a one-year high of $2,000 per ounce this week.
Retailers in Dubai have said that UAE residents are also holding on to their gold assets since they expect the prices to increase further, which will earn them more profit.
Gold prices reached $2,020 per ounce on Wednesday, marking the highest price this year. The prices, however, experienced a decline on Friday morning, with the gold trading at $2,007.79 per ounce, indicating a 0.63% drop from its previous rate.
The closing price of 24K gold on Thursday was recorded at AED 242.75 per gram, while 22K, 21K, and 18K were priced at AED 224.75, AED 217.5, and AED 186.5 per gram, respectively.
These rates depict a fluctuation in gold prices in the region, which have been volatile due to various factors such as global economic conditions, geopolitical tensions, and market demand.
As investors keep a close eye on the market, analysts predict that gold prices will continue to face ups and downs in the near future.
Managing Director for International Operations, Malabar Gold & Diamonds, Shamlal Ahamed, stated that revealed that despite an increase in the gold prices, customers are not selling their jewelry.
He also claimed that purchasing has recently slowed, but this will change owing to the upcoming Eid, which will have a favorable influence.
