Manafeth gold and jewelry trade officials said that the markets witnessed, recently, remarkable activity rates in a number of dealers selling gold bars in their possession to the stores, in order to benefit from the continuation of gold prices at high levels, which is the highest in seven years.
They pointed out to «Emirates Today» that the registration of gold prices, lastly, for a slight and ineffective decline contributed to strengthening the slow demand for purchasing new artifacts in the markets, and the growing sales of dealers for bullion and currencies, with the current prices being a catalyst for these activities, with Record growing demand for the sale of used artifacts for stores.
Significant turnout
In detail, the director of the "Rikesh Jewelery" company, Rikesh Dhanak, said that "the markets are currently witnessing remarkable turnout rates for dealers selling gold bars in their possession to the stores, in order to benefit from the continuation of gold prices at high price limits, which is the highest in seven years."
He pointed out that «the gold price hikes at present, and the absence of any significant drops, contributed to the consolidation of a state of slow demand for the purchase of new artifacts, and most of the transactions in the markets currently focused on buying bullion from dealers», pointing out that “buying bullion from dealers” Returns with profitable operations on traders, with purchases being made at less than gold prices on the market with average values ranging between two and three dirhams, in order to provide profit margins or repackaging the alloys.
Slight dips
In turn, the sales manager at the Al-Matrooshi Jewelery Store, Deep Sony, said that “the lack of record gold prices for impressive declines and limited to slight declines, supported from the slow pace of buying artifacts, but at the same time motivated some to sell the alloys they have to the stores, especially The fact that current prices stimulate sales, whether for savings or investment purposes. ”
He added that «most of the sales of the alloys were concentrated in the dealers of Asian and Arab nationalities, and are carried out on different sizes of alloys, but most of them are medium weights of the category of 50 grams.
Gold coins
For his part, the manager of the «Dahkun Jewelery» store, Ashok Poet, pointed out that «there is a great demand currently from dealers to sell bullion and gold coins to the stores, to take advantage of the high price limits, especially without recording any recent significant price declines.»
He explained that «most dealers prefer to sell medium and small weight alloys, with prices expected to record new heights during the coming period, due to the repercussions of the global markets», pointing out that “the markets witnessed great slow rates in the demand for purchasing new artifacts.”
Price indicators
Yesterday, the price of gold recorded declines in the country’s markets ranging between 25 and 50 fils per gram of different calibers.
The price of a gram of 24 carat gold reached 199.25 dirhams, a decrease of 25 fils, compared to its prices at the end of the previous week, while the price of a gram of 22 carat gold amounted to 187 dirhams, a retreat of 50 fils, and the price of a 21-carat gram reached 178.5 dirhams, a decrease It reached 25 fils, and the price of a gram of 18 carat gold reached 153 dirhams, down 25 fils.
"Safety purchases" raise gold globally
Gold rose yesterday, due to purchases of a demand for safety, fueled by fears about the fast-spreading Corona virus, but a rise in stock markets limited the gains of the metal.
The spot price of gold rose 0.2% to $ 1638.7 an ounce. And US gold futures fell 0.2% to $ 1639.5.
"When we see support for gold and the dollar together, it is an indication of a desire for safe haven from investors," said Michael McCarthy, chief market strategist at CNBC Markets.
The non-yielding gold was backed by the Federal Reserve suddenly cutting interest rates on Tuesday to protect the world's largest economy from the consequences of the epidemic.
"If this rise of stocks continues for three or four days, then markets may treat them as a green light in terms of the economic impact of the virus, and we may see pressure on gold," McCarthy said. "The situation is very volatile."
London ■ Reuters