Dubai gold price surprises shoppers with near Dh7 jump after 3 days of drops
Dubai: The Dubai gold rate has gained a near Dh7 a gram early today, which will come as a complete jolt to shoppers in the UAE who had been hoping for a third straight day of price softening. The local gold price for a gram of 22K is Dh374.75, while for the 24K version, it's back to over Dh400. (The 24K gram is now at Dh404.65.)
Shoppers and gold sellers were hoping to see the Dubai gold rate drop further to around Dh360 for a 22K today as global markets returned to positive territory and there was less hard talk over US tariffs and removing the Federal Reserve Chairman.
Between now and May 1 is a crucial period for gold shoppers given that the Indian festival of 'Akshaya Trithiya' falls on April 30. (This along with another Indian festive buying period on 'Dhanteras' and Diwali later in the year represent some of the highest volume sales phase for gold in the UAE, outside of promotions during Dubai Shopping Festival, Dubai Summer Surprises, etc.)
Shoppers shouldn't lose heart, gold retailers say, saying there is still time for prices to soften. 'These days, the way gold is moving, anything can change in 24 hours,' said an FX analyst. 'Even within 24 hours.'
Correction – but not a crash
What shoppers should not be expecting to see is a downright 'crash' in gold prices. 'If in any of these days, gold closes below $3,280 an ounce, that's a crash,' said Anil Dhanak, Managing Director at Kanz Jewels. 'Until then, it's all more of a price correction.'
Now, it's interesting that bullion prices did drop to around $3,260 an ounce levels for a brief while in these last few hours before powering up to trade at $3,336 now.
That means more of a correction. Earlier this week, the 22K Dubai gold rate was at its highest point of Dh388 as gold prices pummeled its way through to $3,500 an ounce. (And looked good for some more climbs...)
Then a lot happened in the US over the week to cool markets down, and gold prices dropped as well.
Book or not?
The other big question for gold buyers is whether it makes sense to book and lock in prices for Akshaya Trithiya or not. (Booking ensures that they benefit from any price drops between then and the day of booking. If prices shoot higher, then they can still buy at the pre-booked rate. The only condition is the buying must be done in 30 days or so.)
"I would say any price around Dh360 a gram would have been good to book," said a shopper, who plans to pick up a couple of gold bars whatever the Dubai gold rate is on April 30.
Meanwhile, new jewellery stores keep opening in the UAE, because at the end of the day, resident shoppers and visitors are not going to shed their preference for the yellow metal - or for diamonds.
The Indian jewellery retailer Arakkal Gold and Diamonds opened its biggest showroom in Sharjah, at the Safari Mall. Not just that, brought out 500 kilos in new gold designs.
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