Traders: Most of the transactions are made on small weights..and anticipate for more declines

Price drops improve the demand for gold jewellery

Gold prices recorded decreases, ranging from 2.25 dirhams to 3.5 dirhams per gram.

Photography: Ashok Verma

Gold prices at the end of last week recorded decreases of between 2.25 and 3.5 dirhams per gram of various carats, compared to their prices at the end of the previous week, according to the price indicators announced in Dubai and Sharjah.

Officials of the gold and jewelry trade outlets told «Emirates Today» that the return of gold to price declines recently, after three consecutive weeks of increases, supported the improvement in demand for sales of gold jewelry, especially with some dealers going to buy gifts of jewelry, as a hedge against the rise in prices again. .

They explained that most of the transactions take place on gold pieces of small weights, with some dealers anticipating further declines.

gold prices

And gold prices recorded at the end of last week, decreases, whose value ranged between 2.25 dirhams and 3.5 dirhams per gram of various carats, compared to their prices at the end of the previous week, according to the price indicators announced in Dubai and Sharjah.

The price of a gram of 24-carat gold amounted to 226 dirhams, a decrease of 3.5 dirhams, compared to its prices at the end of the previous week, while the price of a gram of 22-carat gold recorded 212 dirhams, a decrease of 3.25 dirhams.

The price of a gram of 21-carat gold reached 202.5 dirhams, a decrease of three dirhams, and the price of a gram of 18-carat gold reached 173.75 dirhams, a decrease of 2.25 dirhams.

Customer Orientation

The dealer, Muhammad Samih, said that he bought two pieces of gold crafts as gifts, to take advantage of the current decline in gold prices, pointing to expectations that prices will return to rise at greater rates during the coming period.

In turn, the dealer Ahmed Abdullah said that he was anticipating gold prices during the last period, and postponed the purchase process in the periods of price hikes, noting that as soon as prices fell, he decided to buy some gifts of gold jewelry that were concentrated in small weights, to match the financial allocations that he put.

And the dealer, Samah Ashraf, agreed that she took the initiative to buy two pieces of gold jewelry of small weights, as soon as the gold recorded price drops recently.

Demand improved

In addition, the director of sales at the "Al-Sarraf Jewelery" shop, Abdullah Muhammad Al-Tohamy, said that the markets had recently recorded an improvement in demand for gold jewelry, supported by the recent declines in gold prices.

Al-Tohamy pointed out that the "improvement" is still limited, expecting an increase in the demand for buying gold jewelry in the coming days, in the event that prices are stable at similar rates, or additional price drops are recorded.

As for the sales manager in the “Imagination Jewelery” store, Samir Ali, he attributed the improvement in demand for the purchase of gold jewelry currently to the return of gold prices to decline after price increases that lasted three consecutive weeks, in addition to the tendency of a number of dealers to buy gifts of jewelry, as a precaution against the return of prices to record highs New.

He explained that the markets witnessed a limited demand from dealers to buy gold coins of small and medium weights for purposes related to savings and gifts, especially with the currencies being products that are suitable for use in both purposes.

In the same context, Ahmed Mulhim, sales manager at La Rose Jewelery, said that sales of gold jewelry recorded an improvement in turnout rates recently, after a period of price hikes.

He explained that most of the transactions take place on gold pieces of small weights, with some dealers anticipating further declines.

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