They attributed it to dealers' anticipation of stimulating price declines

Dealers: slow demand for new gold artifacts

• The price of a gram of 24 carat gold was 230.25 dirhams.

  ■ archive

picture

At the end of last week, gold prices recorded declines ranging between 1.5 and 1.75 dirhams per gram of various karat, 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 markets have recently witnessed noticeable slowdowns in the demand to buy new gold jewelry, with a number of dealers anticipating price declines at greater rates that stimulate buying, pointing out that the recent declines were not effective. Positively.

In turn, dealers said that they decided to postpone the purchases with the continuation of relatively high prices, despite recording a limited decline recently.

Postponing the purchase

In detail, the trader, Raed Hassan, said that he decided to postpone the purchase of a gift from the artifacts now, in anticipation of gold price drops in greater proportions during the coming period.

The customer, Reham Lotfi, said that she wandered around the craft stores to choose a gift for one of her family members, but she decided to postpone the purchase, with expectations of further drops in gold prices during the coming period, especially since the current prices are still considered high and not incentivized to buy.

The dealer, Muhammad Shahid Abdul-Khaleq, added that the current prices are still relatively high, which made him buy a small piece of jewelry, and decide to postpone the purchase of another piece for a later period, with market expectations about a greater decline in gold prices during the coming period.

Buying artifacts

For his part, Director of the «Anfar Jewelery», Abdul Mohsen Anfar, said that «the markets are currently witnessing noticeable signs of slowing in the demand for the purchase of new crafts, with a number of dealers postponing the purchase, in anticipation of further decreases during the coming period, in addition to the absence of occasions. Or seasons during the current period, contribute to activating the purchase rates ».

He explained that «the bullion and gold currency trade sector is currently witnessing slower rates of greater proportions of work, with the current prices being unsuitable for purchase, while continuing at relatively high limits.

Limited retraction

In turn, the manager of “Dehkan Jewelery”, Ashok Pwitt, said that “despite the limited decline in gold during the recent period, it has not been effective in reactivating the movement of demand for new jewelry purchases,” pointing out that “in the absence of low prices And seasons and events stimulating to buy, signs of slowdown have finally dominated the selling movement in the markets.

Rikish Dahnak, director of the Rikish Jewelery Company, added that “the handcraft stores are currently suffering from slow sales, but they are counting on an improvement in demand during the coming period, especially with the beginning of next month, with the entry of the occasion (Diwali Day) or (Festival of Lights), which It contributes annually to stimulating sales, in addition to expectations that prices will decline in greater proportions during the coming period, which is what a number of dealers are currently anticipating, which will push sales at the time to increase at greater rates.

gold prices

The price of a gram of 24 carat gold was 230.25 dirhams, a decrease of 1.75 dirhams, compared to its prices at the end of the previous week, while the price of a gram of 22 carat gold was 216.25 dirhams, down 1.75 dirhams, and the price of a 21-carat gram reached 206.25 dirhams, down It was 1.75 dirhams, and the price of a gram of 18 carat gold reached 176.75 dirhams, down 1.5 dirhams.

Gold is heading globally for its first loss in 3 weeks

Gold fell yesterday, and it seems that it is heading towards its first weekly loss in three weeks, while the dollar is holding on to its rally, while providing more financial stimulus in the United States seems unlikely before the presidential elections.

In spot transactions, gold fell 0.2% to 1,903.24 dollars an ounce, losing 1.4% since the start of last week.

US gold futures fell 0.1% to $ 1,907.5.

Edward Moya, chief market analyst at Oanda, said: "There is some additional bullish trend for the dollar, and that is an opposite factor for gold, in addition to the ongoing (US) stimulus negotiations, which did not result in progress."

He added, "Everyone is in agreement that there will be no agreement before the elections."

The dollar, which is considered a safe haven, headed towards recording its first weekly gain in three weeks, supported by the increase in Corona virus infections globally, and the bets on the US stimulus package were dispelled.

The "Covid-19" pandemic has caused unprecedented printing of money and low interest rates globally, which puts gold on its best general path in 10 years, given its attractiveness as a hedge against inflation and currency depreciation.

As for the other precious metals, silver fell 0.8% to $ 24.11 an ounce, and fell 3.9% for the week.

Platinum fell 0.4% to $ 860.22 an ounce.

- Shops for artifacts expect an improvement in demand during the coming period on the occasion of "Diwali Day".

Follow our latest local and sports news, and the latest political and economic developments via Google news