Gold levels are close for two weeks

Slow demand for artifacts due to anticipation of lower prices and «absence of stimulating seasons for buying»

The price of a gram of 24 carats was 215.5 dirhams.

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Officials of gold and jewelry outlets reported that the markets have recently witnessed a slowdown in the demand for artifacts, as a result of the anticipation of a number of dealers for greater price declines, with price indicators close to the yellow metal for a period of two weeks, in addition to the absence of occasions and seasons during the current period that stimulates the buying process during the current period.

In turn, dealers confirmed to Emirates Today that they preferred to postpone the purchase now, pending lower prices during the coming period.

Postponing the purchase

In detail, the dealer, Samir Hassan, said that “after touring the market to search for a gift from the artifacts, he decided to postpone the purchase for additional days, supported by market expectations about the possibility of a significant drop in prices during the coming period.”

The customer, Sana Abdel-Hamid, indicated that she “intended to buy two pieces of artifacts, but she preferred to buy one piece now, and postpone the purchase of the other piece, until prices drop in greater proportions than her current indicators.”

The client, Abeer Al-Mahdi, added that "the recent recording of gold prices of decreases in limited rates indicates the possibility of recording greater declines during the coming period, especially with expectations of international reports about new opportunities for an additional decline in gold prices, which made her delay the purchase in anticipation of those declines."

Gold markets

In turn, the manager of the “Basalt Jewelery” store, Ali Al-Yafei, said that “the gold markets have recently witnessed a slowdown in the demand for crafts due to the absence of occasions or seasons stimulating to buy during the current period, in addition to the fact that a number of dealers prefer to postpone the purchase in anticipation of further declines. The price during the coming period », pointing out that« the sales of artifacts in the markets recently concentrated heavily in the 18 carat carat, despite being the lowest price among all calibres.

Additional drop

For his part, Director of “Dehkan Jewelery”, Ashok Poit, said that “gold prices recorded limited declines for the second consecutive week, which motivated dealers to anticipate further decline, supported by expectations of international reports in this regard, in addition to the spread of vaccines distribution. (Corona) in various world markets, which is what made dealers postpone buying during the current period.

He added that «the absence of occasions or seasons stimulating the purchase at present contributed to the slow situation in the markets witnessed by the sales of handicrafts, especially as dealers are busy paying obligations related to the school season during the current period.

The director of the "Rikesh Jewelry" company, Rikesh Dahnak, considered that "the state of activity that the markets witnessed during the period of (Valentine Day) did not continue, despite the continued decline in prices, due to the state of anticipation that controls a large number of dealers, in anticipation of further price drops. Gold, especially since there are currently no occasions that motivate them to buy, and the preference of some to direct spending in the payment of tuition fees.

gold prices

At the end of last week, gold prices recorded decreases that ranged between 25 and 50 fils per gram of various karat.

The price of a 24-carat gram was 215.5 dirhams, a decrease of 50 fils, compared to its prices at the end of the previous week, while the price of a 22-carat gram was 202.5 dirhams, down 50 fils.

The price of the 21-carat gram reached 193.25 dirhams, a decrease of 25 fils.

The price of a gram of 18 carats reached 165.5 dirhams, down 50 fils.

Gold is heading globally for its second monthly decline

Gold prices fell, yesterday, to their lowest level in a week, and headed towards the second consecutive weekly and monthly decline, as brighter economic prospects and concerns about inflation support the US Treasury yields.

In spot transactions, gold fell 0.1% to $ 1767.81 an ounce, after falling earlier to its lowest levels since February 19 at $ 1764.90.

Prices are down 0.8% for the week, and 4.2% since the start of the month.

US gold futures fell 0.6% to $ 1765.7, yesterday.

Prices fell 1.9% yesterday, as record US Treasury bond yields reached their highest levels since the start of the pandemic, raising the dollar.

"Increasing inflation expectations at a time when markets take into account the reopening of developed market economies, pushing returns to higher and putting pressure on gold," said Oanda’s chief market analyst, Geoffrey Haley.

Higher inflation boosts gold, but it also raises treasury yields, which in turn increase the opportunity cost of owning the yellow metal that yields no return.

Haley added, "The overall picture looks bad. Gold now faces the risk of an actual downward movement, if returns rise again."

London - Reuters

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