The gold market has witnessed, finally, dealers in the sale of what they possess of used gold artifacts, with gold continuing at high price limits.
Officials considered Mahal gold and jewelry trade for "Emirates Today", the current prices, a stimulus for the dealers, even though they are at the highest limits for 10 years, describing the movement of selling gold jewelry used by the dealers as a "banner" during this period, to obtain good financial liquidity.
In turn, dealers confirmed that they preferred to sell their gold used jewelery in their possession to take advantage of the high prices, and to buy back modern designs in times of declining gold prices.
gold prices
In detail, the prices of gold recorded, at the end of last week, slight declines that ranged between 50 and 75 fils per gram of various calibers.
The price of a gram of 24 carat gold reached 219 dirhams, a decrease of 50 fils compared to its prices at the end of the previous week, while the price of a gram of 22 carat gold recorded 205.5 dirhams, a decrease of 75 fils.
The price of a gram of 21 carats reached 196.25 dirhams, with a decrease of 50 fils, and the price of a gram of 18 carat gold reached 168.25 dirhams, with a decrease of 50 fils.
A golden opportunity
The dealer, Samir Saad, told «Emirates Today» that his family sells what they have of used gold artifacts, with the current prices of gold being an opportunity to exchange old models, as well as taking advantage of the high price limits for gold, with the possibility of buying back modern designs when gold prices return To record discounts that are large and promising for future purchases.
Maryam Majed agreed that the high prices of gold allow customers to sell part of their holdings and obtain good financial liquidity.
As for the trader, Mahmoud Ali, he said that he and his family have been thinking about selling some of the old gold artifacts in their possession for some time, pointing out that the continuation of gold at high rates encouraged him to sell what he had.
Hedge the dealers
Meanwhile, the director of the «Dahkan Jewelery Company», Vishal Dahkan, said that a large number of dealers are now accepting to sell the gold holdings in their possession, with prices continuing at high limits. This was attributed to some consumers hedging the return of prices to decline, which deprived them of obtaining good financial liquidity, explaining that the slight decline in gold gram prices during a week was not affecting the remarkable activity of the dealers in the sale of used gold artifacts.
Motivating prices
In the same context, the sales manager of "Imperial Jewelry" Ashwin Sony said that the current prices for gold are appropriate and stimulating, to increase the demand of different segments of dealers to sell used artifacts, and to take advantage of financial liquidity to pay various obligations, or to exchange old models of gold, and repurchase at Yellow metal price declines.
The manager of the "Anfar Jewelery" store, Abdel Mohsen Anfar, agreed that the continuation of gold prices at great high rates motivated a number of dealers to sell old gold artifacts, pointing to the approaching Eid Al-Adha season, and the financial obligations that it entails for some families, in addition to Some dealers prefer to sell used artifacts when prices reach high rates.
Corona, unlike America and China, enhances the appeal of gold as a safe haven
Gold settled near the level of $ 1,800 yesterday, after falling sharply in the previous session, as its attractiveness, a safe haven, received support from concerns about high incidence of coronavirus infection and tension between the United States and China.
And gold rose in immediate transactions 0.1% to 1797.96 dollars an ounce (ounce), at a time when gold fell in US futures contracts 0.1% to 1798 dollars.
"Gold remains strong because of the growing geopolitical uncertainty, the re-emergence of cases of (Corona) virus, and the rise in the United States as well as around the world," said John Sharma, economist at the National Bank of Australia. But the rise of the US dollar curbs gold. ”
In turn, the President of the Federal Reserve Bank of New York, John Williams, said that "the American economy may take years to recover from the devastation caused by the pandemic, and that the time has not yet come to consider raising interest rates."
It is noteworthy that lowering US interest rates enhances the appeal of the yellow metal, which does not yield returns.
As for other precious metals, palladium fell 1.4% to 1967.75 dollars an ounce, while platinum fell 0.3% to 822.07 dollars.
Silver fell 0.7% to 19.03 dollars, but it is heading towards the sixth consecutive weekly rise. Reuters capitals
The price of a gram of 24-carat gold reached 219 dirhams.
The sale of used gold is due to the traders hedging the decline in prices.