Exceeding 9 dirhams per gram in a week

Low prices drive the demand for bullion and goldsmiths in a limited way

The price of a gram of 24 carat gold was 225.5 dirhams.

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At the end of last week, gold prices recorded declines ranging between 8.25 and 9.5 dirhams per gram of various calibers, compared to their prices at the end of the previous week, according to price indicators announced in Dubai and Sharjah.

Officials of gold and jewelry outlets told "Emirates Today" that the markets have recently witnessed limited growth rates in demand for the purchase of bullion and artifacts, following the declines in gold prices, finally, with great value, pointing out that the demand has not increased by large proportions. In keeping with the decline in prices, dealers are anticipating further declines, in addition to waiting for the salaries to be delivered.

In turn, dealers said that they bought small pieces of artifacts or bullions, in anticipation of additional expected declines in gold prices during the coming period.

Small pieces

In detail, the trader, Bashar Hussein, said that he had decided, at last, to buy a small bar weighing 10 grams, following the recent declines in gold prices, while he decided to postpone the purchase of another alloy in anticipation of additional price drops.

The dealer, Muhammad Malik, indicated that he had intended to buy two pieces of the artifacts, but he was satisfied with one small piece now, and decided to postpone the purchase of the major piece until the date of receiving the salary, in anticipation of the price decline in additional rates during the coming period.

The customer, Sana Abdel-Hamid, added that she bought a small piece of jewelry and postponed buying another piece for the coming days, with prices expected to decline further.

Price dips

In turn, the director of the Rikish Jewelery Company, Rikesh Dahkan, said that “the price declines, which gold finally recorded, contributed to attracting a number of dealers to buy new jewelry and alloys, but the growth rates in sales were limited, for two reasons: The first is anticipation of some The dealers have additional price declines, according to market expectations, and the second reason is for dealers to postpone the purchase decision until the time for salaries are delivered, and to pay the important obligations first, and then buy the artifacts later.

He explained that, "Finally, the purchases were concentrated in the small weights of the artifacts or alloys, and the largest share was concentrated in weights ranging between 5 and 10 grams."

yellow metal

For his part, the sales official at the “Al-Shahid Jewelery” store, Muhammad Ishfaq, said that «the price decline in the yellow metal, finally, positively contributed to moving the demand for the purchase of artifacts and alloys, despite the fact that the turnout is still limited, compared to the value of the decreases recorded by the prices. Gold, however, it is expected that the markets will witness greater popularity in the coming days, with the fact that some dealers prefer to wait in anticipation of further declines, and then they accept buying decisions.

He pointed out that «the purchases of new artifacts came in greater proportions, compared to the indications of the demand for buying bullion and currencies, with the fact that most dealers in these products wait for longer periods, until buying decisions are made in times of cuts.

The director of "Hayat Jewelry", Dilip Dahnak, added that "despite the significant declines in gold prices, finally, their positive effects came in limited proportions, for reasons related to anticipating new price drops, or waiting for the salaries to be delivered." He expected that "the period will witness "The coming boom is of greater proportions in the purchase, whether with regard to alloys or artifacts, with incentives such as price cuts and the delivery of salaries."

gold prices

By the end of last week, gold prices recorded decreases ranging between 8.25 and 9.5 dirhams per gram of various karat.

The price of a gram of 24-carat gold was 225.5 dirhams, a decrease of 9.5 dirhams, compared to its prices at the end of the previous week, while the price of a 22-carat gram of gold was 211.75 dirhams, down 9 dirhams, and the price of a 21-karat gram reached 202 dirhams, down It was 8.5 dirhams, and the price of a gram of 18 carats reached 173.25 dirhams, a decrease of 8.25 dirhams.

Globally, gold is heading to its biggest weekly decline since August

Gold prices rose yesterday, as the dollar fell, and hopes for more stimulus measures in the United States re-emerged, but the yellow metal is on the path to record its biggest weekly decline since August.

Spot gold rose 0.3% to $ 1873.83 an ounce, but prices are down about 4% for the week, as they were pressured by the dollar’s ​​rise in general.

US gold futures rose 0.1%, to $ 1,879.20.

"With a lull on the data front, it seems that investors want to remain in a state of agility and prudence by leaving their money in the dollar, instead of moving into precious metals or US bonds," said Chief Market Analyst at Oanda, Geoffrey Haley.

Investors' hopes are also growing, after (a legislator) said, the day before yesterday, that Democrats in the House of Representatives are working on a stimulus package, linked to the Corona virus, of $ 2.2 trillion, that may be voted on this week.

And a number of policy makers at the Federal Reserve (the US Central Bank), including Chairman of the Board, Jerome Powell, appeared in public several times, last week, to urge the US government to provide more financial support.

Gold prices have risen by more than 20% since the beginning of this year, as central banks around the world have provided incentives and lowered interest rates to near zero, to counter the economic damage caused by the "Covid-19" pandemic.

211.7

A dirham is the price of a gram of 22 carat gold, down nine dirhams.

The failure to increase demand by a large percentage is due to the anticipation of further price declines.

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