According to price indicators released in Dubai and Sharjah, gold prices decreased between 3.5 and 5.5 dirhams for various calibers by the end of the week compared to their prices at the end of the previous week. The prices of the yellow metal continued to decline for the second week in a row, reaching a total decline of 9.5 dirhams per gram in two weeks.
Officials from gold and jewelry retailers told "Emirates Today" that the ongoing price declines have had a positive impact on the markets by stimulating demand for gold jewelry sales, with stimulating declines recorded. They noted that the markets have seen remarkable rates of demand from tourists who have been waiting to buy jewelry gifts.
Dehkan Jewellery Company Director Jay Dehkan stated that "sales are currently witnessing an activity in demand for gold artifacts, with dealers buying gifts of artifacts for requirements related to them, to take advantage of the recent decline in gold prices at stimulating rates," adding that "the popularity of tourist activity in the UAE markets during the recent period, and the demand for buying gifts of jewelry, was supportive of the growth of the company."
He said that after a protracted time of continuing gold prices at high rates, under the pressure of Global Market Variables, "the continuation of prices at close rates in the coming days will enhance the recovery of demand in stores, especially since many dealers prefer to buy during that period."
The local markets "respond quickly and favorably to price changes or even to the momentum of demand from tourist groups, which account for large shares of jewelry sales," according to Adita Singh, sales manager at Tanchik Jewellery.
According to Dilip Son, sales manager at Diamond Jewellery, "many stores are counting on sales growth during the current period, to make up for the slowness witnessed by the markets during the periods of great rise during the past period," noting that "the continuation of the price decline for two weeks was one of the positive motivating factors that contributed to attracting many customers to buy their supplies of handicrafts gifts during the break."
The price of gold in Dubai:
In addition, the cost of a gram of 24-karat gold decreased by 5.5 dirhams to roughly 237.5 dirhams from where it was after the previous week. AED 220, a five-dirham decrease, was noted as the cost of a 22-carat gram. A gram of 21-carat gold cost 213 dirhams, a decrease of 4.75 dirhams. A gram of 18-carat gold cost 182.5 dirhams, which is a decrease of 3.5 dirhams.
