Traders increase purchases amid expectations of further gains following two weeks of price declines
Dubai: Gold prices recorded their first weekly increase after two consecutive weeks of declines, rising by between Dh3.75 and Dh6.5 per gram across different carats, according to price indicators announced in Dubai and Sharjah.
The gains follow a two-week period in which gold prices fell by a combined Dh28.5 per gram.
The price of 24-carat gold rose to Dh505.50 per gram, up Dh6.50 from the end of the previous week. The price of 22-carat gold increased by Dh6 to Dh468 per gram.
Twenty-one-carat gold rose by Dh5.75 to Dh448.75 per gram, while 18-carat gold increased by Dh5 to Dh384.75 per gram. The price of 14-carat gold reached Dh300 per gram, up Dh3.75.
Market officials said the return to higher prices has boosted demand for gold bullion, with traders increasingly expecting prices to continue climbing and taking advantage of current levels, which remain below those seen before the recent decline.
Hossam Suleiman, Sales Manager at BTC UAE, said markets were witnessing strong demand for gold bullion despite recent price movements.
He said prices remain at attractive buying levels even after the latest gains, particularly following the larger declines recorded over the previous two weeks.
Suleiman added that recent price increases had strengthened trader confidence in the possibility of further gains, encouraging purchases in anticipation of higher prices in the future.
Ali Abu Al Hassan, Chief Executive Officer of Arab Gold and Jewellery Company, said demand for gold products, including bullion and jewellery, has increased during the current period because prices remain lower than levels seen in previous months.
He said demand is no longer limited to gifting and adornment, but has also extended to savings and investment purchases as traders seek to benefit from current pricing levels amid expectations of long-term growth.
Raj Bahi, Sales Manager at Mashu Gold and Jewellery Trading, said the recent increases remain limited compared with the declines recorded in previous weeks.
He added that traders have continued buying bullion despite the price rise, with some encouraged to increase purchases because of expectations that prices could rise further in the coming period.
Source: Emirates 24|7