Gold and jewelery outlets have confirmed that markets have improved in buying new gold jewelery, supported by recent price declines.
The price of gold, at the end of last week, declines of between 1.75 dirhams and two dirhams per gram of different caliber, compared to the end of the previous week, according to the prices announced in the Dubai and Sharjah markets.
Gold retailers have seen an improvement in the appetite for new gold jewelery, backed by recent price declines, said San Sirdas Veerani, director of El Cinder das Zephiri Jewelery.
He added that the festival of lights (Diwali) was one of the catalysts, which supported sales in the stores, the rates ranged between 10 and 15%, compared to the normal periods.
Dilip Sony, sales manager at Diamond, said the price declines have re-energized the market to buy new goldsmiths, mostly focused on small-scale gifts.
He pointed to the demand and inquiries regarding the small gold bullion, with expectations of future increases in gold prices, and estimated the growth in sales, finally, between 5 and 10%, compared to previous periods.
Abdul Salam KP, CEO of Malabar Gold & Jewelery Group, said that the demand for new gold jewelery was supported by recent price declines and active buying during or after the Diwali Sounds. By some Asian dealers, pointing out that some dealers were buying with the monitoring of price declines after the festival.
He considered the appetite of a number of dealers to buy gold, currently, came as a hedge from future price rises.
He said the purchases were concentrated in small gold coins, which contributed to the revitalization of sales by an estimated 10%, compared to normal periods.
gold prices
The price of a gram of 24-carat gold at the end of last week AED 180, a decline of two dirhams, while the price of a gram of 22-carat gold 169 dirhams, a decline of two dirhams. The price of a gram of 21-carat reached 161.25 dirhams, down by two dirhams, and the price of grams of 18-carat gold to 138.25 dirhams, a decline of 1.75 dirhams.