Traders: growing activity in the markets despite the high prices

Gold sales are boosted by the "pay off" and the tourism boom

• The price of a gram of 24 carat gold was 230 dirhams.

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At the end of last week, gold prices recorded increases of between 2.5 and 3.25 dirhams per gram of various karat, compared to their prices at the end of the previous week, according to price indicators announced in Dubai and Sharjah.

Officials of gold and jewelery outlets told Emirates Today that the markets witnessed a remarkable increase in the demand for the purchase of handcrafted gifts and gold coins, with the support of keeping pace with the current period of salaries delivery to employees, in addition to the recovery of demand from tourists spending New Year holidays. Gregorian in the country now.

Buying artifacts

In detail, the dealer, Samir Ramzy, said that he “bought a piece of artifacts as a gift for his family on the occasion of the start of the new year, in light of the presence of withdrawals and offers of discounts in the currently artisanal markets.”

The dealer, Amir Massad, indicated that "he was planning to buy a gift of gold jewelry on the occasion of the New Year for his family, and that he finally bought after observing price changes for a while, and noticed that prices will not record significant declines in the current period."

The client, Mona Kamel, added that she is "used to buying a piece of gold jewelry at the beginning of every new year, and that the recent price rises were not significant or effective to prevent her from buying."

Turnout rates

In turn, the director of “Dahkan Jewelery”, Jay Dahkan, said that “the rates of demand for buying gold continued to record growth rates recently, especially as the current period coincides with the period of salaries being delivered to employees, which stimulated a number of dealers to buy now, in light of An occasion such as the beginning of the new year ».

He pointed out that "the largest percentages of sales were concentrated in the artifacts of 18 and 21 carats, while tourists of European nationalities accounted for the largest proportions of the sales of tourists."

Tourist traffic

For his part, Director of Sales at the "Diamond Jewelery" store, Dilip Sony, added that "the tourism movement is currently in vogue, with a number of tourists spending their holidays in the country on the occasion of (Christmas), and the beginning of the new year, to support the increase in demand for the purchase of craft gifts at greater rates. During the recent period », pointing out that« the current period has also witnessed an increase in the turnout of a number of resident dealers to buy gold products, whether from currencies or crafts, after handing over the salaries of employees.

Raj Bahi, director of the Mashom Gold and Jewelery Store, considered that “the (Christmas) period and the New Year’s celebrations are among the best periods for the recovery of gold sales during the year 2020, with the increase in tourist groups in the state’s markets during the current period, and with the number of residents from Various nationalities to buy gifts from currencies and artifacts, on the occasion of the beginning of the new calendar year, especially with keeping pace with the current period of the date of the salaries of employees.

gold prices

The price of a gram of 24-carat gold was 230 dirhams, an increase of 3.25 dirhams, compared to its prices at the end of the previous week, while the price of a gram of 22-carat gold was 216 dirhams, an increase of three dirhams.

The price of the 21-carat gram reached 206 dirhams, an increase of three dirhams.

The price of a gram of 18 carat gold reached 176.75 dirhams, an increase of 2.5 dirhams.

The largest percentages of sales were in two calibers: 18 and 21 carats.

Gold jumps 25% globally in 2020

Gold stabilized with the continued losses of the dollar, so that the metal is heading to achieve the best annual performance in a decade, supported by economic uncertainty, and in light of the huge stimulus distributed by governments around the world to mitigate the impact of the "Covid-19" pandemic.

And gold was traded in spot transactions at the level of 1892.97 dollars an ounce.

US gold futures settled up 0.1% to $ 1,895.10.

The precious metal has gained 25% since the beginning of 2020, as central banks and governments, globally, have adopted economic stimulus measures, paving the way for higher inflation and a decline in the currency's value.

Gold, which yields no return, is a hedge against inflation, which is likely to result from unprecedented fiscal stimulus measures and ultra-easy monetary policies.

As for the other precious metals, silver outperformed gold over the past year with a gain of nearly 48%, which is the best annual performance since 2010, but the spot price of silver fell 1.2% to $ 26.3 an ounce.

"We expect silver to outperform silver in 2021 on the basis of more favorable conditions due to the shift towards cleaner energy, which raises industrial demand, in addition to the expected economic recovery, which will benefit the country," said an analyst at Saxo Bank, Oli Hansen. Silver is more than gold.

Palladium is heading to record gains for the fifth year in a row, as it gained 25% in 2020, while platinum is heading for its second consecutive yearly increase, up 10%.

Palladium jumped 3% by the end of trading to $ 2433.61, and platinum fell 0.2% to $ 1063.52 an ounce.

London - Reuters

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