According to reports, sales in Dubai’s gold and jewellery sector are declining as locals refrain from making any purchases. The recent increase in gold prices, which reached a one-year high of $2,000 per ounce this week, is to blame for the decline in demand.
Dubai-based retailers claim that citizens of the UAE are also holding onto their gold investments because they anticipate additional price increases that would boost their profits.
The highest price of the year for gold was recorded on Wednesday when it surpassed $2,020 per ounce. On Friday morning, however, the prices dropped, with the price of gold selling at $2,007.79 per ounce, a decrease of 0.63% from the previous rate.
On Thursday, the closing price for 24K gold was AED 242.75 per gram, while the prices for 22K, 21K, and 18K were AED 224.75, AED 217.5, and AED 186.5 per gram, respectively.
These rates show the change in regional gold prices, which have been influenced by a number of variables including market demand, geopolitical conflicts, and global economic conditions.
Analysts believe that gold prices will have ups and downs in the near future as investors closely monitor the market.
According to Malabar Gold & Diamonds’ Managing Director for International Operations, Shamlal Ahamed, despite a rise in gold prices, customers aren’t selling their jewellery.