They confirmed that dealers are hedging against the price hike in the future by buying during the current period

Merchants: “Dubai Shopping” offers and tourists motivate them to buy gold jewelry

The price of a gram of 24 karat gold amounted to 216.75 dirhams.

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Gold prices decreased, at the end of last week, with a value ranging between 1.25 and 1.5 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 gold and jewelry trade outlets told «Emirates Today» that the markets have recorded, finally, rates of improvement and growth in demand for the purchase of new works, with the support of price declines recorded by gold recently, in addition to the hedging of a number of dealers from expectations of higher prices in the future by buying now. For gifts and wedding supplies, pointing out that the continuation of the Dubai Shopping Festival offers, and the momentum of tourist demand, had positive effects in improving sales.

In turn, dealers said that they preferred to buy some pieces of handicrafts now as gifts in the context of benefiting from the decline in gold prices, and for fear of significant future hikes, according to the expectations that echo in the markets.

gold jewelry

In detail, the dealer, Ahmed Hossam, said that he "bought gifts of gold jewelry, now, for family occasions, because the current prices are stimulating to buy, especially with a number of stores offering discounts that coincide with the Dubai Shopping Festival."

The dealer, Mazen Youssef, added that “expectations of a price increase in the coming period motivated him to buy gifts on the occasion of his marriage, in addition to the offers on the prices of some jewelry in Dubai, and the offers of raffles on purchases, during the Dubai Shopping Festival were among the motivating factors for the purchase".

The dealer, Maryam Khaled, indicated that “the current period is stimulating to buy handicrafts for reasons related to the continued low prices, in addition to price expectations during the coming period, and offers in handicraft stores for discounts and value added, whether in Dubai markets due to the shopping festival or in a number of stores in the souks. Sharjah to activate sales.

In turn, the director of sales at the "Anan Jewelery" store, Abdulaziz Al-Khatib, said that "the markets have recently witnessed improvement rates and growth in demand for sales of handicrafts, due to several factors related to the low prices, and some dealers went to buy for fear of the return of prices to rise at greater rates during the period." In the coming days, in addition to the momentum of the activity of tourist groups, which was positively reflected in supporting the sales movement in a remarkable way.”

Rising prices

And the director of sales at the “Diamond Jewelery” store, Dilip Soni, considered that “a large number of dealers went to buy during the current period, and in a growing manner in the markets, due to the hedging system and the fear of high prices, according to what was reported in the markets, in addition to recording gold prices with rates of decline. In addition, although they were basically at low rates,” noting that “the offers offered at a number of stores now, and in line with the Dubai Shopping Festival, whether related to discounts on jewelry prices or raffles on golden gifts for buyers, were among the factors that supported the growth of demand in markets.”

And the director of sales at the “Al-Sarraf Jewellery” shop, Abdullah Muhammad Al-Tohamy, indicated that “gold prices recorded additional declines, finally, and some dealers hedge against expected price increases, in addition to the facilities or discounts offered by some stores, whether on offers of workmanship fees or discounts. In jewelry, one of the factors that supported the remarkable growth of demand in the market recently.”

gold prices

The price of a gram of 24-carat gold reached 216.75 dirhams, a decrease of 1.5 dirhams, compared to its prices at the end of the previous week, while the price of a 22-carat gram was 203.5 dirhams, down 1.25 dirhams.

The price of a gram of 21 carats reached 194.25 dirhams, down by 1.25 dirhams.

The price of an 18-carat gram reached 166.5 dirhams, down 1.25 dirhams.

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