The price of the gram has decreased by as much as 8 dirhams in a week
Dealers: Falling prices stimulate the purchase of gold coins
The price of a gram of 22 carat gold is 209.75 dirhams
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Gold prices decreased at the end of last week, by a value that ranged between 6.25 and eight 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 markets have recently witnessed rates of activity in the demand for buying gold coins, with the support of the significant declines in gold prices recently, pointing out that dealers in the crafts and alloy sectors are in a state of anticipation. Currently, for more price declines, which led to a slowdown in demand for these products.
In turn, dealers said that they preferred to buy gold coins now because they are compatible with the current prices for savings and gifts, due to the ease of sale and availability in different weights, in addition to being suitable for use in artifacts such as necklaces and bracelets.
Gold coins
In detail, the dealer, Salah Darwish, said that he “bought a piece of gold coins as a gift, with the fact that these coins are currently considered suitable gifts, so that they can be used for savings or adornment purposes, while placing them in necklaces or bracelets.”
The dealer, George Tayan, pointed out that «the recent price declines of gold motivated him to buy two pieces of coins as gifts for his wife, especially since the coins are available in different weights and are easy to sell without large losses in workmanship compared to the artifacts. They can also be used for adornment by placing them inside chains or bracelets.
The client, Zeina Joseph, explained that she “preferred to buy gold coins of different weights, with the decline in the price of the yellow metal, because the coins have different advantages compared to alloys or artifacts, as they can be easily resold without bearing large percentages of workmanship, in addition to the possibility of using them as adornment with necklaces. And bracelets ».
Turnout rates
In turn, the director of "Famas Jewelery", Taghi Hidayat Zadeh, said that "the markets have recently witnessed rates of interest in varying proportions to buy gold coins, with the support of the significant price declines recently recorded by gold, while the artifacts witnessed a slowdown in purchase demand, with A large number of dealers are anticipating more price declines, in addition to the absence of occasions or seasons currently stimulating buying.
Downturn
For his part, the manager of the "Anan Jewelry" store, Abdulaziz Al-Khatib, considered that "the reasons for not stimulating the price decline in the factor of demand for artifacts, which witnessed remarkable slow rates, are the preference of a large number of dealers to anticipate prices, and expectations of additional declines, especially since the declines." It is the largest in value since more than five weeks », pointing out that« gold coins are considered suitable products for the current conditions, with their suitability for decorative or saving purposes, and thus witnessed rates of demand compared to other products ».
"The markets have witnessed a lull in demand for the purchase of artifacts and bullion, compared to limited rates of purchase of gold coins," said Manjesh Balikra, a sales official at the "Regie's Jewelry" store, pointing out that "the price decline of gold reflected more positively on currency sales." .
The US stimulus raises gold prices globally
Gold rose yesterday, as the demand for the yellow metal was boosted as a hedge against inflation thanks to a large US package to alleviate the repercussions of "Covid-19", while prices also received support thanks to a position that tends to facilitate monetary policy on the part of the Federal Reserve (the US Central Bank).
Spot gold rose 0.1% to $ 1848.75 an ounce, while US gold futures settled at $ 1851.
"The stimulus will be positive for the asset markets," said Chief Market Analyst at Oanda, Geoffrey Haley. "With the Fed Chairman excluding any possibilities to increase interest rates or reduce bond purchases soon, gold is receiving support."
However, he said that the gold price movement is witnessing a state of stability and does not show any signs of an attempt to breach towards the upside.
The US President-elect, Joe Biden, unveiled a proposed stimulus package worth $ 1.9 trillion the day before yesterday, to stimulate the economy and accelerate immunization operations with anti-Coronavirus vaccines.
The President of the Federal Reserve, Jerome Powell, said yesterday that he does not see a justification for deviating from the policy of extreme monetary easing of the central bank, given that the US economy is still far from its targets for inflation and employment.
The easing of monetary policy adds pressure on government bond yields, and benefits gold that does not yield a return.
The yield on the US benchmark 10-year Treasury bonds fell, after hitting a 10-month high earlier in the week, while Asian stocks rose.
London ■ Reuters
gold prices
The price of a gram of 24 carat gold reached 223.25 dirhams, a decrease of eight dirhams, compared to its prices at the end of the previous week.
While the price of a gram of 22 carat gold recorded 209.75 dirhams, down 7.5 dirhams.
The price of the 21-carat gram reached 200 dirhams, a decrease of 7.25 dirhams.
The price of a gram of 18 carat gold reached 171.5 dirhams, a decrease of 6.25 dirhams.
Slow demand for artifacts and alloys in anticipation of more price declines.
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