Dubai Gold and Jewelery Group reported that estimates of gold prices in the markets during the year 2020 will range between 1500 and 1,600 dollars per ounce, expected that the new year will witness an increase in demand for bullion and gold coins.
The group expected for «Emirates Today» to witness a significant improvement in the demand for jewelry and golden jewelry locally compared to 2019, with the support of the activities of “Expo 2020 Dubai”, in addition to the high rates of export and re-export of gold jewelry from Dubai.
gold prices
In detail, the Chairman of the Board of Directors of the Dubai Gold and Jewelery Group, Tawhid Abdullah, expected that the prices of gold in the markets during the year 2020 will range between 1500 and 1,600 dollars per ounce, given the continuing turmoil in the world during the new year.
He added that it is expected that the local market will witness a large demand in varying proportions on bullion and gold coins, for gifts and savings purposes, or investing in gold as a safe haven.
He believed that 2020 will generally see improvement in sales of the gold and jewelry markets in Dubai, compared to 2019, supported by the increase in tourism activity and the momentum of the Expo 2020 Dubai event, which is expected to push sales to rise by more than 20% compared to 2019.
Export traffic
Abdullah pointed out that the events of "Expo 2020 Dubai" will also contribute to the increase in the movement of export and re-export of golden artifacts from Dubai to the global markets, with increased opportunities for influx of corporate representatives to Dubai during that period, pointing out that the activity of exporting and re-exporting artefacts from Dubai acquires On percentages of up to 75% of all sales in the sector.
Sales growth
Abdullah stated that despite the gold markets facing some challenges during 2019, affected by global repercussions, the estimates of sales of gold markets in Dubai maintained an estimated growth rates of 3% and parallel to the growth rates recorded for sales during 2018.
He mentioned that the year 2019 witnessed higher growth rates in sales of gold jewelry during the first half of it, compared to sales in the second half of the year, due to the large price hikes of gold globally during the second half.
He emphasized that the application of the tax return system for tourists at the end of 2018, showed positive results during 2019, and sales support for tourists during different periods of the year, which kept recording growth rates in sales of handicrafts and jewelry in Dubai markets, especially during times of peak tourist activity.