They attributed it to high prices and quiet demand
Dealers: Limited sales of gold jewelry
The price of a gram of 24 carat gold was 231.25 dirhams.
■ archival
picture
Gold prices rose, at the end of last week, by the value of one dirham and 1.25 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, so that the prices of the yellow metal continued their increases for the second consecutive week, reaching the total increases during the previous two weeks Five dirhams per gram.
Officials of gold and jewelry trade outlets told Emirates Today that the markets witnessed a limited demand for buying gold jewelry, affected by the continuing price increases and calm demand, after the end of the celebrations of the beginning of the new year, pointing out that most of the turnout was concentrated in the small volumes of artifacts.
In turn, dealers confirmed that they reduced their purchase plans for the artisans, to keep pace with the recent price hikes.
Buy gifts
In detail, the dealer, Nabil Majed, said that he changed his plan to buy a gift from the artifacts for his family, and was forced to buy a small gift, and to postpone buying another piece, when the prices fell again.
The dealer, Samir Mina, indicated that he reduced the budget for purchasing jewelry gifts, after monitoring the continued price increases of gold for the second week in a row, especially since the prices were already high before that.
The customer, Sanaa Youssef, added that she was planning to buy two pieces of artifacts, but she decided to buy one piece now, and wait for the prices to drop until she starts buying again.
Limited turnout
For his part, Director of “Dehkan Jewelery”, Ashok Boyet, said that “the markets witnessed a limited turnout for buying gold jewelry, following the state of activity that it recorded during the celebrations of the beginning of the new year, in addition to the continuation of the recent price increases achieved by the yellow metal.” Until «the current absence of stimulating buying events, negatively affected the selling movement in the markets».
Small pieces
In turn, the manager of the Rikesh jewelry store, Rikesh Dahnak, said that “sales rates have declined at medium rates following the celebrations of the beginning of the new year, and most sales were concentrated in small pieces of handicrafts, after dealers went to reduce purchases and focus on gifts of low weights, after Gold prices will continue to rise recently. ”He expected that“ the markets will witness boom rates again, in the event that gold prices record significant rates of decline, supported by the launch of (Corona) vaccines in global markets. ”
The director of Hayat Jewelry Company, Dilip Dahkan, considered that “the recent decline in the demand for jewelry is logical, after the great boom that the markets witnessed during the celebrations of the beginning of the new year, which was followed by a lull in the turnout, with the fact that the largest number of dealers had Finished from the purchases in earlier times ».
He added that «the tourist groups accounted for large shares of sales, while sales to residents were concentrated in small-weight and limited pieces of artifacts, affected by the continuing high gold prices for the second week in a row.
gold prices
The price of a gram of 24 carat gold was 231.25 dirhams, an increase of 1.25 dirhams, compared to its prices at the end of the previous week.
A gram of 22 carat gold recorded 217.25 dirhams, an increase of 1.25 dirhams.
The price of a gram of 21 carats reached 207.25 dirhams, an increase of 1.25 dirhams, and the price of a gram of 18 carat gold reached 177.75 dirhams, an increase of one dirham.
Most of the purchases were concentrated in the small sizes of the artifacts.
Investors are internationally accepted into the money and gold markets
Yesterday, weekly flow statistics from Bank of America showed that investors approached the money markets and gold funds last week, as the vitality towards stocks dissipated a little.
The bank said that monetary funds saw an inflow of $ 29.1 billion, and that gold attracted $ 1.5 billion, representing the largest entry into flows since August, in a week ending on Wednesday.
He added that the "trends in the flow of earnings" in 2020 had leaked to 2021, and recommended selling stocks against the background of prices that began to increase above real value, and "greedy" positions.
Global equity funds recorded $ 11.2 billion in inflows, mainly driven by US investors ’withdrawal of $ 1.6 billion from emerging market shares, the first influx of flows in 16 weeks.
In addition, gold fell yesterday, as the dollar and US Treasury bond yields rose, but hopes for additional stimulus in the largest economy in the world kept the yellow metal on the path of achieving gains, for the second week in a row.
Gold fell in immediate transactions 0.3% to 1,907.66 dollars an ounce, but it has increased 0.5% since the beginning of this week.
US gold futures fell 0.3% to $ 1,908.8.
“In the short term, it appears that we just lack a catalyst to push prices up,” said IG market analyst Kyle Roda.
The effect of (fiscal stimulus hopes) is driving inflation expectations higher, but we are starting to see bond yields rising as well, which is logically important for gold. ”
The yield on the benchmark 10-year bonds hit a new record high since March, consolidating above 1%, and helping the dollar recover strongly.
The rise in the dollar increases the cost of gold for holders of other currencies, while the increase in bond yields increases the opportunity cost of owning the precious metal that does not yield a return.
The Democrats' control of the US Senate fueled hopes for major stimulus measures and boosted inflation expectations, which supports the appeal of gold as a hedge against inflation.
London ■ Reuters
Follow our latest local and sports news, and the latest political and economic developments via Google news