The yellow metal records decreases of up to 3.75 dirhams per gram

Traders: limited effects of the decline in gold prices in the markets

Gold prices are still in high price ranges despite their current decline.

Photography: Ashok Verma

Officials of outlets selling gold and jewelry trade confirmed that the recent price drops recorded by gold had very limited effects on demand in the markets.

Yesterday, gold prices recorded decreases, whose value ranged between 2.75 dirhams and 3.75 dirhams per gram of various karat, compared to the prices of the end of the previous week, according to the price indicators announced in Dubai and Sharjah.

The sales official at the "Anan Jewelry" shop, Abdulaziz Al-Khatib, said that the markets witnessed a slowdown in demand, despite the recent price drops recorded by gold, which had very limited effects on the sales of gold works or even coins and bullion.

He attributed the calm state of demand to the fact that prices, despite their decline, are still within high price limits, which prompted dealers to postpone purchase decisions, in anticipation of recording greater price declines during the coming period.

For his part, the director of the "Dahkan Jewelery" company, Jay Dehkan, said that most outlets expected that the recent price drops for gold would have a greater impact on sales, and not very limited, stressing that merchants are counting on the coming period to improve sales at better rates.

He believed that the lack of impact of the decline in prices on the sales of gold jewelry is due to the preoccupation of most dealers with preparing for the holiday and travel season, which leads them to postpone purchase decisions until before or during Eid al-Adha, or before the date of their summer holidays.

As for the sales official at the “Imperial Jewelry” store, Ashwin Shawnee, he said that the preoccupation of a number of dealers with arrangements for the end of the school season and preparations for summer holidays, in addition to anticipation of greater price declines, are among the factors that greatly affect the movement of demand in the markets, despite the price declines. last for gold.

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