Gram increments of up to 5 dirhams per week

Price increases demand is focused on buying small gold coins

The price of a gram of 24 carat gold was 230.5 dirhams.

Photography: Patrick Castillo

At the end of last week, gold prices achieved new highs, ranging between 3.75 and five dirhams per gram of various calibers, compared to their prices at the end of the previous week, according to price indices announced in Dubai and Sharjah.

Officials of gold and jewelry trade outlets told Emirates Today that the return of gold price hikes contributed to the concentration of large percentages of demand in the markets, finally, on the purchase of small-weight and small-sized artifacts, with some dealers moving to reduce purchase budgets, pointing out that the demand for The purchase of bullions and currencies witnessed a remarkable slowdown, with price declines expected.

Price increases

In detail, the director of “Dahkan Jewelery”, Jay Dahkan, said that “the price increases, which are recently recorded by gold, which are large in value, did not have negative effects on the decline in sales, but contributed to the concentration of large rates of demand for the purchase of small-sized artifacts. And the weight », pointing out that« the start of the resumption of tourist groups ’activity supported the indicators of purchase demand, finally, in the markets, especially for tourists of Asian nationalities.

Application rates

For his part, Director of the Mashum Jewelery Company, Raj Obahi, added that “the markets have witnessed, finally, rates of demand for the purchase of gold jewelry, but they are concentrated in small-weight and small-sized artifacts, with a number of dealers reducing purchasing budgets, affected by the price increases recorded by gold. , Which made some dealers, who were planning to buy more than one piece or a large piece of artifacts, focus on buying a small piece or two only.

He stated that «the gradual return to the activity of tourist groups with the resumption of flights to more than one international destination, had positive effects in supporting the rates of purchase, even in light of the price rises of gold».

Purchases

In turn, Director of Sales at “Al Matrooshi Jewelery”, Deep Rajesh, said, “Most of the purchases in the markets, at last, were focused on the demand for the purchase of small-weight and small-sized artifacts, as affected by the price increases recorded by gold,” pointing out that “these increases It did not have negative effects in the markets, in terms of slow demand, but it changed buying patterns temporarily, with the gradual return of the tourist groups to the markets, in the form of supporting the sales movement in a limited way.

He added that «the price increases have limited the demand for the sale of used gold, and also caused a slowdown in bullion and currency sales, with a number of dealers in these products anticipating the return of price declines.

gold prices

In addition, the price of a gram of 24 carat gold reached 230.5 dirhams, an increase of five dirhams, compared to its prices at the end of the previous week.

While the price of a gram of 22 carat gold was 216.5 dirhams, an increase of 4.75 dirhams.

The price of a gram of 21 carats reached 206.5 dirhams, an increase of 4.5 dirhams, and the price of a gram of 18 carat gold reached 177 dirhams, an increase of 3.75 dirhams.

Trump's infection with "Corona" supports gold worldwide

Gold continued its gains yesterday, and is on the path to achieving the best weekly performance in about two months, as investors began to buy safe haven assets, after US President Donald Trump was infected with the Coronavirus (Covid-19).

Gold rose in spot transactions 0.5%, to 1915.34 dollars an ounce, to erase the losses it incurred in early transactions in Asia.

And US gold futures rose 0.3% to 1922.2 dollars.

And the yellow metal gained 2.9%, since the beginning of the week, and is on track to achieve the largest percentage increase, since the week ended, on the seventh of August.

"Trump's diagnosis of (Covid-19) caused a significant immediate rise in gold prices, as investors flock to (safe) haven centers," said Chief Market Analyst at Oanda, Geoffrey Haley.

"I think risk aversion will remain high," he added.

Depending on how the situation develops at the end of the week, especially if more senior leaders of the US government are infected with the virus, gold may prepare for an extended wave of rise.

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