The yellow metal is heading globally towards the worst week in 15 months

Gold .. large price declines .. and traders are waiting for a further decline مزيد

Gold prices recorded at the end of last week, declines ranging from 9.75 dirhams to 12.75 dirhams per gram of various calibers, compared to their prices at the end of the previous week, according to the price indicators announced in the Dubai and Sharjah markets, at a time when gold prices globally are heading towards recording worse Weekly performance, since March 2020, after the Federal Reserve’s shift towards a monetary tightening tone caused the dollar to rise, and negatively affected the attractiveness of the yellow metal.

At a time when dealers said that they preferred to postpone purchases until gold prices recorded new declines, officials of gold and jewelry trade outlets confirmed to "Emirates Today" that despite the large price drops recorded by gold recently, the markets witnessed a limited demand for buying gold jewelry. The new ones, due to factors related to the anticipation of some dealers for additional price declines, and the preoccupation of some with the summer vacation season and the end of the school year season.

They expected sales to witness greater activity in the coming days, in the event that prices stabilize at low rates or that additional price drops are recorded.

The price of a gram of 24-carat gold amounted to 216 dirhams, a decrease of 12.75 dirhams, compared to its price at the end of the previous week, while the price of a gram of 22-carat gold was 203 dirhams, a decrease of 12 dirhams.

The price of a gram of 21-carat gold reached 193.75 dirhams, a decrease of 11.25 dirhams, and the price of a gram of 18-carat gold reached 166 dirhams, a decrease of 9.75 dirhams.

Postpone the purchase

The trader, Tamer Mohamed, said that he would like to buy a piece of the new gold jewelry, but he preferred to wait a bit in anticipation of gold prices recording a further decline, according to some expectations in the markets.

In turn, the dealer Ibrahim Badir said that he bought a small piece of gold and postponed the purchase of two pieces, with expectations of gold prices recording new declines during the coming period.

The dealer, Amr Hassan, stated that after choosing a piece of gold artifacts, he postponed the purchase process on the advice of a friend, in anticipation of new price drops or the stability of gold prices at similar rates.

Limited turnout

In addition, the manager of the "Dahkan Jewelery" store, Jay Dehkan, said that the markets witnessed a limited demand for buying new works, despite the significant declines in gold prices recently.

Dehkan attributed the slow demand, to some dealers waiting for salaries, and not buying during the middle of the month, as well as the habits of some dealers to anticipate additional price drops, according to market rumors.

For his part, the director of sales at the "Diamond Jewelery" store, Dilip Soni, said that the recent large price declines in gold prices were not significantly influential in moving the demand for the purchase of new gold works, with some dealers anticipating further price declines.

He pointed out that keeping pace with the current declines is the period of most dealers’ preoccupation and their preparations for the summer holidays and travel season, as well as the end of the school year, and the payment of the initial fees for the new academic year. When stable at rates close to the current price limits.

In the same context, the sales official at the "Imperial Jewelry" store, Ashwin Shawnee, confirmed that the activity of selling new works witnessed a limited movement in demand, with some dealers anticipating new additional price drops.

It was agreed that the preoccupation with preparations for the summer holiday season was one of the factors that affected the fact that the recent price drops did not have a noticeable effect on stimulating demand.

worst performance

Globally, gold prices are heading towards recording the worst weekly performance since March 2020, after the Federal Reserve’s shift towards a monetary tightening tone caused the dollar to rise, and negatively affected the attractiveness of the yellow metal.

And gold rose in spot transactions yesterday, 0.5% to $ 1781.96 an ounce, but it is down by 5% in the week.

US gold futures gained 0.5% to $1,782.70.

"The Federal Reserve's change in policy expectations triggered a drop in gold prices," said Edward Meyer, an analyst at ED&F Man Capital Markets, noting that "the reaction in gold is somewhat exaggerated."

After the monetary tightening statements from the Federal Reserve, the dollar jumped to its highest level in two months, and is heading towards its best week in nearly nine months.

Although gold is considered a hedge against inflation, higher interest rates will reduce its attractiveness as it means that the opportunity cost of holding it will increase.

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