UAE gold prices fall to lowest this year?

Consumers in UAE who have been holding up gold purchases would do well to revisit the shops this week, as prices have fallen to its lowest level this year and there are bargains to be had at the jewellery counters.

Compared to previous weeks alone, today’s gold rates are significantly lower and buyers could save approximately Dh4 per gram on new pieces. The price of 24-karat gold is now fixed at Dh Dh153 per gram, down 2.7 per cent from this month’s peak of Dh157.25 per gram.

However, some analysts are predicting jewellery prices to drop further, with the price of 24K forecast to dip to almost Dh148.50 per gram.

That’s a saving of approximately Dh9.25 per gram, and those who want to take advantage of the price cuts are advised to act fast, as the precious metal could very well go back up again after a few weeks.

The bullion has taken a beating from a stronger US dollar and decline in demand from gold consumers in India and China.

Gold consumption has dropped recently not just in other markets but also in the UAE. During 2017, retailers in UAE managed to sell 42.8 tonnes of gold jewellery. That’s a 1.3 per cent decline compared to the previous year’s sales of 43.4 tonnes.

As of early trade on Monday, spot gold was selling at $1,264.34 an ounce.

“Gold is currently trading at its lowest point for the year, mainly due to the strengthening of the US dollar and the reduced demand from India and China,” Vijay Valecha from Century Financial Brokers told Gulf News.

“We could see 24K gold fall to almost Dh148.50 per gram from the current price of Dh153 in the coming weeks.”

Valecha cautioned that gold’s outlook for the rest of 2018 is still positive, so the rates could change and work against buyers and investors.

“The outlook on gold for the rest of the year is still very bullish and investors should take this dip as a buying opportunity,” said Valecha.

Dubai’s jewellery sector is already offering bargains to customers. At least 65 shops are giving away massive discounts on diamond, gold and other jewellery pieces from June 8 to July 8, 2018.

This is in line with the month-long “My Jewellery Season” campaign spearheaded by the Dubai Gold and Jewellery Group, in partnership with the Dubai Corporation for Tourism and Commerce Marketing.

Courtesy: gulf news/ Image: AP