Merchants: Improved weather increases demand for "open markets" stores

Tourists and the continuation of prices at low rates support the growth of sales of "golden jewellery"

The high movement of tourist groups in the state markets supports gold sales.

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Officials of gold and jewelry trade outlets said that gold prices continued at low rates, and the high rates of tourism turnout to stores, contributed to the growth in demand for sales of new works recently.

And they pointed out, to "Emirates Today", that the improvement in the weather increased the rates of turnout for stores located in the open markets recently, which was positively reflected on sales, while gold prices recorded at the end of last week limited increases, the value of which ranged between 50 fils and one dirham per gram. of various calibers, compared to their prices at the end of the previous week, according to the price indicators announced in Dubai and Sharjah.

In detail, the director of the "Hayat Jewelery" store, Dilip Dehkan, said, "The markets are witnessing during the current period an activity in demand for sales of handicrafts, supported by the continuation of gold prices at low and stimulating rates, despite the limited increases, in addition to the growth rates of tourist demand for stores. With the popularity of tourist groups in the country’s markets during the winter season.”

He added that «many traders were expecting the markets to witness a state of calm and slow demand for sales, after the end of the fiftieth holiday of the union, but the continuation of prices at low limits, and the demand of a number of dealers to buy, for fear of the return of gold prices to rise in the coming periods, Boost sales.

In turn, Samir Ali, the sales manager at the "Nakhil Jewelery" store, considered that "the current prices are motivating to buy, which was a strong driver in attracting a large number to buy handicrafts recently, in addition to the remarkable activity of the turnout rates from tourist groups in various regions."

He said that "the improvement in the weather contributed to stimulating the demand for jewelry stores in the open markets, which was positively reflected on sales, compared to previous periods in which the largest movement of demand was concentrated on stores located within the malls."

For his part, the director of “Rikesh Jewelery” company, Rickish Dhann, confirmed that “the markets are currently witnessing an exceptional case of popularity in the sales of handicrafts, with the support of the high movement of tourist groups in the country’s markets, in addition to the high demand for gold markets in open places, with improvement constant temperature.

He pointed out that «the limited increases that gold recorded recently, were not influential in limiting the demand for purchase, especially since a large number of dealers prefer to buy now, for fear that prices will shift, according to some expectations, to rise during the coming period», pointing out that « The markets witnessed limited cases of buying gold bars and coins, with medium weights, with the emergence of trends among some dealers to buy these products as gifts on various occasions for families and friends, in a similar way to crafts.”

Gold is heading globally to record its fourth weekly decline

Gold prices rose globally yesterday, but headed for the fourth consecutive weekly decline, with investors staying away from big bets ahead of inflation data in the United States, which may prompt the Federal Reserve to reduce its bond purchases at a faster pace.

And gold rose in spot transactions 0.2% to 1778.13 dollars an ounce.

And US gold futures rose 0.2% to $ 1779.30.

Prices of the yellow metal fell 0.4% during the past days, with investors being cautious ahead of the consumer price index report in the United States, and the Fed meeting next week.

“Gold is defending the lower bound of the $1,770-1810 range because investors are concerned about a hawkish shift from the Federal Reserve, but there is still enough,” said Stephen Ince, managing director of SBI Asset Management. From the uncertainty surrounding the strain (Omicron), which may delay the cycles of raising interest rates, to support gold.”

Reducing stimulus and raising interest rates tends to push up government bond yields, which raises the opportunity cost of acquiring the non-yielding yellow metal.

Price Indicators

The price of a gram of 24-carat gold reached 215.5 dirhams at the end of last week, an increase of one dirham, compared to the previous week, while the price of a gram of 22-carat was 202.25 dirhams, an increase of 75 fils.

The price of a gram of 21 karat reached 193 dirhams, down by 75 fils, while the price of a gram of 18 karat reached 165.25 dirhams, a decrease of 50 fils.

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