Bullion demand strengthens across the UAE as gold prices decline by up to AED9.75 per gram, extending losses over three consecutive weeks
Dubai: Gold prices in the UAE extended their downward trend for a third consecutive week, with the price of a gram declining by between AED6 and AED9.75 across different gold purities compared with the previous week, according to price indicators in Dubai and Sharjah.
The latest declines bring the total drop in gold prices over the past three weeks to AED30.75 per gram, prompting increased demand for gold bullion, according to retailers.
Gold and jewellery traders said the sustained decline in prices has encouraged consumers to buy gold bars for saving and investment purposes, particularly given the scale of the recent price reductions.
Bullion demand rises
Jay Dehkan, Director of Dehkan Gold and Jewellery Trading, said the market has witnessed stronger demand for gold bullion of various weights as prices continue to move lower.
“The continued decline in gold prices has encouraged customers to buy bullion for saving and investment purposes,” he said.
Dehkan added that the recent falls have boosted market activity after a period of cautious buying by investors.
Mang Balerk, Sales Manager at Reg Gold and Jewellery Trading, said the recent price corrections have become a major factor attracting buyers.
He noted that many customers expect gold prices to rise again in the future, making current levels attractive for investment.
Balerk said demand for bullion remains stronger than demand for jewellery because bullion purchases are primarily linked to savings and investment, while jewellery purchases tend to be driven by occasions and seasonal demand.
The sales manager at Masho Gold and Jewellery Trading also said lower gold prices have encouraged many consumers to enter the market, citing growing confidence in bullion as a savings and investment tool.
Latest gold prices
According to local market indicators:
24-karat gold fell to AED524 per gram, down AED9.75
22-karat gold declined to AED485.25 per gram, down AED9
21-karat gold dropped to AED465.25 per gram, down AED8.75
18-karat gold eased to AED398.75 per gram, down AED7.50
14-karat gold fell to AED311 per gram, down AED6
Global gold market
Globally, gold prices stabilised ahead of the weekend near their lowest level in a week.
Spot gold traded at around US$4,318.88 per ounce after touching its lowest level since 2 September. The precious metal had declined by about 2 per cent on Thursday.
US gold futures for December delivery fell 1.1 per cent to US$4,359.50 per ounce.
Among other precious metals:
Silver slipped 0.1 per cent to US$63.48 per ounce
Platinum held steady at US$1,777.42 per ounce
Palladium fell 0.2 per cent to US$1,279.25 per ounce.
Source: Emirates 24|7