The Dubai Gold and Jewelery Group reported that local gold prices reached their highest level in 10 years, with the price of a 24-karat gold gram exceeding the 215 dirham barrier at the beginning of this week, due to the effects of the Corona virus on global economies and increased demand for the metal Yellow is a safe haven.
She explained, for "Emirates Today", that the effect of "Corona" in the global markets changed the estimates of the price limits for gold during the current year, which were revolving between 1,600 and 1,800 dollars an ounce, as global expectations have ranged between 1700 and 1900 dollars, pointing out that The return of tourists to the Dubai markets will support the improvement in demand for gold and gifts.
Upper boundaries
In detail, the Chairman of the Board of Directors of the Dubai Gold and Jewelery Group, Tawhid Abdullah, said that gold prices reached their highest levels for 10 years, after the price of a 24-carat gold gram exceeded the local barrier of 215 dirhams, reaching about 219 dirhams at the beginning of the week This is due to pressure from the impact of the Corona pandemic on international economies, and the increase in demand for the yellow metal as a safe haven.
Abdullah added that the international fears of the spread of the Corona pandemic more and its repercussions on the markets have changed global estimates of the price limits for gold during the current year, which ranged between 1,600 and 1,800 dollars per ounce, while they ranged between 1700 and 1900 dollars per ounce until the end of this year, and that After prices finally broke above $ 1,800 an ounce and broke the previous forecast.
Support
Abdullah stated that the start of the return of tourist groups to Dubai would reflect positively on the improvement of sales of handicrafts and golden gifts, whether in open markets or in shopping centers, but he indicated that this would be gradual.
He pointed out that the offers of the "Dubai Summer Surprises" festival, which started recently and continue until the end of this summer, will also have positive effects on supporting sales of gold and jewelry in the country, through the use of stores in commercial centers to increase consumer demand for those centers. To participate in the prize draws that accompany the festival.
Customer behavior
Abdullah explained that the repercussions of the spread of the Corona virus, and the large increases in gold prices, compared to previous periods, were reflected in changing the behavior of dealers in the markets and consumption patterns, as the rate of demand for new artifacts decreased, compared to an increase in the trend of dealers to buy currencies and alloys in greater proportions, whether For the purposes of saving or investing, with increased confidence in gold as a safe means of saving during the current period, and as a reflection of the increased demand from major institutions and investors to buy gold.
He pointed out that the effects of the «kurna» virus affected companies operating in the jewelry and jewelry trade sector in Dubai, indicating that most companies resorted to keeping pace with market changes, by increasing flexibility in the offers offered, with a greater focus on the segment of consumers residing in the country, especially with the absence of Tourists about the markets during the last period.
- the effect of «Corona» in global markets, but the price limits of the estimates of gold during 2020.