Supported by the continued low rates
Merchants: Remarkable demand for gold bars and coins
At the end of last week, gold prices recorded declines for the third week in a row, achieving a decline of between 25 and 50 fils per gram of various karats, compared to their prices at the end of the previous week, according to the price indicators announced in Dubai and Sharjah, bringing the total value of the decline in the price of a gram Gold in three weeks to 8.75 dirhams.
The price of a gram of 24-carat gold amounted to 212 dirhams, similar to its price limits at the end of the previous week, while the price of a gram of 22-carat gold settled at 199.25 dirhams.
In turn, the price of a gram of 21-carat reached 190 dirhams, a decrease of 50 fils, and the price of a gram of 18-carat gold reached 162.75 dirhams, a decrease of 25 fils.
Officials of gold and jewelry trade outlets told «Emirates Today» that the markets witnessed a demand for buying small and medium-sized bullion, supported by the continuation of prices at low limits, and expectations of significant price increases in the coming periods.
They indicated a state of caution in buying, coupled with the rapid fluctuation in prices.
For their part, dealers said that the current prices of gold are motivating to buy gold coins and bars, pointing out that they preferred to buy gold bars and coins with medium and small weights, given the ease of selling them when liquidity is needed.
In detail, the dealer Abdullah Khaled said that he bought two gold bars of 30 grams, given that these weights are suitable for investment and saving, stressing that he intends to buy more than one piece later, when prices continue at low rates.
In turn, the dealer, Muhammad Raslan, said that the current prices of gold are an incentive to buy gold coins and bullion, pointing out that he bought more than one piece with the aim of saving.
He explained that the gold coins he bought were of small and medium weights, for easy selling when needed, to obtain needed liquidity.
As for the dealer, Saleh Ibrahim, he told «Emirates Today» that he bought two gold bars, and a piece of gold coins of medium weights, agreeing that small weights are easy to sell, unlike pieces of large weight.
Bullion and coins
Bullion and coins
In addition, the director of «Baghdad Jewel Gold Trading Company», Intisar Ward, said that the rates of demand for the purchase of gold jewelry in the markets declined by varying rates recently, in the interest of the demand for bullion and gold coins.
He pointed out that there is a demand for bullion and currencies for the purpose of saving and investment, after the continued decline in prices for the third week in a row, and expectations that prices will return to a significant increase in the coming period.
For his part, the director of "Rikesh Jewelery Company", Rickish Dahnak, agreed that the markets had recently witnessed a remarkable demand for buying gold bullion, especially from the categories of small and medium weights, supported by the continued decline in gold prices during the recent period.
He attributed the concentration of most purchases in small and medium weights to the fact that a large number of dealers in it cautiously accept the purchase, with the rapid fluctuation in prices, which makes them buy some pieces to take advantage of the low prices, and a hedge against any new price hikes, and at the same time. They wait for price indicators if they record a new decline, or if they continue at the same limits, to buy additional pieces.
In the same context, the director of the “Al-Ayyam Jewelery” store, Galish Saqr, said that the demand for small and medium-weight alloys is spurred by the continuation of gold at low price rates, due to the fact that these products are the most preferred for dealers currently, especially during the pandemic period. Covid-19”, due to the ease of selling them when needed, compared to large pieces that cannot be divided when reselling.
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