Latest news with #Dh420
Khaleej Times
21-05-2025
- Business
- Khaleej Times
Some UAE residents earn up to Dh20,000 selling gold as prices surge, reinvest after dip
As gold prices surged to historic highs in April, several UAE residents seized the opportunity to sell their gold holdings, locking in profits of up to 300 per cent. With prices now retreating from their peak, many of these investors are returning to the market, viewing the current dip as the ideal time to reinvest in the precious metal. Gold prices reached an all-time high of Dh420 per gram last month, but have since dropped below Dh390 per gram as of mid-May. This decline came after easing demand for the precious metal, driven by a trade agreement between China and the US and reduced geopolitical tensions. Globally, gold hit a record $3,500 per ounce in April but recently fell below $3,200. Asita Thakrar, a Dubai resident for 19 years, benefited from the recent price surge, earning around 15 per cent, or Dh20,000, in just one month from selling her gold bars. "When I arrived in 2006, the price was around Dh50- 60 per gram. I have been buying gold as a long-term investment. When prices peaked, I sold a couple of gold bars, which were a small part of my collection. In a month, I made around 10-15 per cent profit, or Dh20,000," said Thakrar, a jewellery enthusiast and collector who has never sold her entire collection. She explained two main reasons for her investment in gold: cultural preference and its value as an easily liquidated asset. "Gold is an investment that's hard to go wrong with, especially given global uncertainties and the strong demand for it. I never sold gold before, but this time, I knew the price surge was temporary, and it would eventually drop. So, I took advantage of the fluctuation and profited," she added. Another long-time UAE resident, Bity Babu, a loyal customer of Joyalukkas, regularly buys and sells gold as the price fluctuates. "I bought gold when the price was just Dh101 per gram, so I benefited both from the low price and new designs. Additionally, I pre-book with the jeweller at a fixed rate, which offers me further advantages," said Bity, a Dubai resident for 15 years. Re-entering the market Nishad Ali Theyathil, an Indian national who has lived in the UAE for 20 years, has invested in gold when the price was around Dh60 per gram. "You can imagine how much prices have increased over the past 20 years. It has been a great help to me as both a family man and an investor. I've invested heavily in gold bars, which helped me build capital over the years. In just one year, prices soared," he explained, adding that gold has been a reliable asset for long-term financial planning, including funding children's education and other family needs. "I sold some of my gold because prices peaked, and I had to make decisions. Sometimes you need to trade to make gains. Now that prices have dropped, it's the perfect time to buy more with the profits from my previous sales. I am going to re-enter the market," he said. Jewellers report sale increase Jewellers across the UAE have reported a noticeable increase in sales following the drop in gold prices from their peak last month. 'We have seen a significant rise in customer interest and foot traffic in our showrooms, particularly from price-conscious buyers eager to capitalise on the current dip in gold prices. This market shift presents an excellent opportunity to buy, and the strong customer response reflects continued confidence in gold as a reliable, safe-haven asset," said Shamlal Ahamed, Managing Director of International Operations at Malabar Gold & Diamonds. John Paul Alukkas, Managing Director of Joyalukkas Group, also confirmed a "notable uptick" in gold and jewellery purchases following the recent price correction. 'With prices dropping from their peak, many customers are seizing this as a timely opportunity to purchase, particularly those who have been waiting for the right moment,' he added. 'While the current dip has reignited consumer interest—especially among value-conscious buyers and long-term investors—many experts believe the market may continue to consolidate before the next major price shift. There's also speculation that gold prices could dip below $3,000 per ounce, depending on broader market trends.'
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Dubai gold prices drop Dh34 per gram in a month: Will rates fall further?
Gold price is expected to drop below $3,000 per ounce in the near future as risk appetite is growing among investors, reducing demand for safe-haven commodity, say analysts. After hitting an all-time high of $3,500 per ounce on April 22, the precious metal has fallen 8.5 per cent to $3,201 per ounce in nearly a month. In Dubai, prices have fallen around 8.1 per cent or Dh34 per gram to Dh386 on May 18, down from an all-time high of Dh420 in April. The prices have rallied over the past few months due to the central bank's buying, the US tariffs row, and geopolitical tensions around the world. However, as the US and China reached a trade deal, the prices of the yellow metal dropped significantly. 'We have seen a strong gold rally from $3,000 to $3,500, fuelled by concerns about tension between the US Federal Reserve and the US President Donald Trump administration, trade war and geopolitical tensions. With regard to trade uncertainty, we are a little bit more certain because of sub-deals. "Talks are happening to ease geopolitical situations. So, things have eased now with these two developments. Therefore, the risk appetite has improved, and this weighed on the gold price. If things continue to move in the same direction and we don't see a sudden surprise on these fronts, we expect gold to continue sliding and could go even below $3,000, said Wael Makarem, financial markets strategist lead at Exness. 'Risk appetite is significantly growing as we have seen a 20 per cent rebound in US stock indices and similarly European indices are also close to a record. So this shows a significant rebound in risk appetite,' he said. Ahmed Negm, head of market research for Mena at projected that the yellow metal gold will go down below $3,000 in the second quarter of 2025. 'This is because there is no positive sentiment in the gold market. So risky assets such as cryptocurrencies will be in high demand and rise,' said Negm. Farah Mourad, senior market research analyst at Equiti, also sees 'a strong cushion' around the $3,000 level. 'The biggest catalyst in the gold rally was central banks and China bought when gold was $2,800 and even around $3,000. The big institutions followed. But the huge peak that followed and the price reached $3,500, it needed a correction. But we are not worried about this correction because it corrected another momentum that was not that logical. We see strong support around $3,000 and it's good for those who were waiting for the dip to re-enter the market,' she said. Ole Hansen, head of commodity strategy at Saxo Bank, said gold has experienced its sharpest correction in absolute and percentage terms since 2023, breaking through multiple technical support levels. 'Having already hit our 2025 price target of $3,500, we are currently adopting a wait-and-see approach. The market remains between profit-taking from those selling into strength and renewed interest from dip buyers. Despite the recent pullback, several key structural drivers remain intact, including central bank buying, geopolitical risks, fiscal debt concerns, and inflation hedging. These are likely to underpin prices over the longer term, though a period of consolidation may be required before the next significant upside catalyst emerges,' he said.
Khaleej Times
27-04-2025
- Business
- Khaleej Times
Gold prices in Dubai: Rates to stay high amid US-China tariff row confusion, geopolitical tensions
The confusion about the tariff war between the US and China will keep gold maintaining its safe-haven status and keep prices high despite some signs of relations improving between the world's two largest economies. In addition, expectations around the easing of monetary policy and geopolitical tensions in the Middle East will also support the precious metal in the coming months. After hitting a record high of $3,500 per ounce globally and Dh420 per gram in Dubai last week, the precious metal slipped $3,318.47 per ounce and Dh400 per gram over the weekend. Analysts expect gold could soon touch $3,450 again if the economic and geopolitical uncertainties persist. 'Tensions between the world's two largest economies intensified further with reports that China has cancelled a series of Boeing aircraft orders, citing a need to 'reassess strategic priorities'. Although Chinese authorities have not issued any official statements regarding the move, analysts widely interpret this as a form of indirect economic retaliation, meant to signal that Beijing is also capable of leveraging market power to apply pressure on Washington,' said Linh Tran, market analyst at The precious metal rally slowed after the US and China exempted certain goods from tariffs in the growing tariff war between the two countries. US President Donald Trump said on Friday that negotiations with China on tariffs are underway, and Beijing denied any talks taking place with Washington DC. China has reportedly warned that it will retaliate against any country that cooperates with the US in ways that undermine Beijing's interests. 'As the US-China trade war risks spilling over to other countries, global investors are turning increasingly cautious. In this climate, gold remains a strategic safe haven, particularly as capital flows exit equities and other risk assets in search of safety,' she added. US recession concern Ahmad Assiri, research strategist at Pepperstone, said while the market looks for direction, should the pace of selling increase, technical support is seen at the psychological level of $3,300 and $3245. 'A resurgent dollar or higher US equity prices could also test gold's resolve, making further profit-taking of gold longs into rallies a possible tactical move,' he said. Assiri added that one of the compelling reasons that is holding metal is the evolving risk of a US economic recession in the coming 12 months, which is currently implied at 52 per cent. 'In an environment where the US recession probability could go either way, where the data will guide the market's assumptions, gold shines as a powerful safeguard against downside growth risk for institutions and traders alike.' Rate cuts, regional tension Beyond trade concerns, Linh said monetary policy remains a key pillar supporting gold's uptrend. 'Signs of cooling inflation have quickly reshaped expectations for the US Federal Reserve's policy trajectory. The market now leans toward the likelihood of rate cuts beginning in September, or potentially even earlier if economic data continues to soften. In such an environment, gold tends to thrive,' she added. In his latest remarks, Fed chief Jerome Powell struck a cautious tone, acknowledging strong March retail sales but emphasising that economic growth remains fragile. He reiterated the Fed's readiness to act if more definitive signs of slowdown emerge. These dovish signals have further strengthened the belief that a rate-cutting cycle is approaching — a historically bullish development for gold. 'The confluence of trade conflict, rate cut expectations, and geopolitical uncertainty has propelled gold to its latest all-time high near $3,385/oz. If no major policy or economic shocks emerge to reverse the trend, and if current drivers remain intact, gold could continue climbing toward key psychological levels such as $3,400 and $3,450 in the near term."
Khaleej Times
23-04-2025
- Business
- Khaleej Times
Gold prices hit new highs in UAE: Some shoppers sell old jewellery, delay buying new
As gold prices hit record highs in the UAE, some budget-conscious shoppers are cashing in by selling old jewellery, while others are delaying new purchases. Jewellers in Dubai said there was a small 'reduction in the volume of gold jewellery purchases ' as some shoppers shifted to smaller ornaments and gold coins as an investment in uncertain times. However, gold maintains its strong appeal as a safe-haven asset among Dubai and UAE shoppers, with sales being "stable". Gold prices touched $3,500 per ounce on Tuesday globally due to the US tariff row, geopolitical tensions, and central bank buying among others. But prices slipped below $3,400 on Wednesday morning, trading at $3,355.86 per ounce. In Dubai also, the precious metal hit an all-time high as 24K touched Dh420 per gram while 22K reached Dh388.75 per gram on Tuesday. "While the higher prices may have led to a slight reduction in the volume of gold jewellery purchases, it has not been significant enough to cause a drastic drop. However, we are seeing a shift in buying behaviour, with customers opting for more lightweight and smaller pieces, as well as exploring options like gold coins and smaller investment pieces," said Joy Alukkas, chairman of Joyalukkas Group. He noted that they have seen an increase in customers selling their old gold jewellery, particularly those looking to benefit from the high prices. "Many are exchanging their old pieces for newer designs, while others are using it as an opportunity to lock in the current gold rate before prices potentially rise further." Shamlal Ahamed, managing director for international operations, at Malabar Gold and Diamonds, said while a 'small slowdown' in purchases can be expected amongst price-conscious consumers, such dips are typically short-lived as consumers adapt to the new price range. 'Notably, there has been no significant rise in gold exchange transactions, indicating that customers are holding onto their gold assets — a strong sign of their trust in its lasting worth and stability." Stable sales Ahamed said despite gold prices reaching record highs, customer sentiment has remained resilient. "Demand continues to be steady, highlighting the deep-rooted belief in gold's enduring value and its role as a secure and value appreciating investment.' Despite the high gold prices, Joy Alukkas added, sales have been 'stable' across all of their showrooms. "Some shoppers are cautious and hesitant, many are still purchasing gold as they view it as a stable, long-term investment.' He revealed that some shoppers are 'still buying for special occasions, celebrations or as a part of their long-term wealth preservation strategy.' 'We continue to see positive trends in sales, thanks to our attractive offers and innovative designs that meet the current market demand,' added Alukkas.
Khaleej Times
22-04-2025
- Business
- Khaleej Times
Dubai: Gold prices rising ‘by the hour', hit record high
Gold prices have been increasing 'by the hour' in Dubai, hitting a fresh record high of Dh420 per gram on Tuesday due to a relentless rally in global prices, driven by tariffs war, geopolitical tensions and central banks buying. With global prices hitting $3,500 per ounce due to its safe-haven status, the gold rally has left other metals looking ordinary. In Dubai, the 24K variant of the precious metal rose from Dh407.0 per gram on Monday morning to Dh409.25 per gram in the afternoon. It then rose further to Dh412.0 per gram in the evening, scaling new peaks. This upward trend in prices continued on Tuesday as 24K reaching Dh420.0 per gram before settling at Dh412.5 per gram on Tuesday evening. Gold gained nearly Dh20 per gram in 24 hours between Monday and Tuesday morning. Similarly, 22K prices shot from Dh376.75 per gram on Monday morning to Dh379.0 in the afternoon and Dh381.5 in the evening. It jumped over Dh7 per gram to Dh388.75 on Tuesday morning – gaining Dh12 per gram in 24 hours. It was trading at Dh382.25 per gram on Tuesday evening after profit-taking set in. Other metals pale against gold 'Gold's blistering rally has proven unstoppable so far this year." 'The precious metal was trading at around $2,624.50 at the start of the year. Since then, it skyrocketed to a peak of $3,500.10 as of April 22, registering a year-to-date gain of 33.36 per cent,' said Vijay Valecha, chief investment officer at Century Financial. He said this unprecedented surge is primarily being fuelled by US president Donald Trump's tariff policies and outright criticism of Federal Reserve chair Jerome Powell. Ole Hansen, head of commodities strategy at Saxo Bank, said the gold rally was driven by US economic stability concerns as Trump continues to challenge the independence of the Federal Reserve, calling for Chair Powell to be sacked and rates to be cut. Hansen added that thin market conditions during the Easter break made matters worse, with the US dollar and US stocks tumbling. 'With traders losing confidence in the US and Asian buyers scrambling to accumulate gold, the yellow metal will likely remain bid until more clarity on multiple issues — from tariffs and stagflation risks to the Fed — are resolved.' Analysts say that the gains witnessed over the last couple of days have been mainly driven by investors and institutions who jumped the bandwagon due to fearing on fear of missing out (FOMO) from the rally. 'Gold's phenomenal safe-haven, FOMO, momentum-driven rally has left other metals looking ordinary, not least silver, as it now trades at the cheapest level to bullion since early 2020,' he said. Gold eyes $3,700 Many research and financial institutes recently raised their forecasts for gold to $3,500 per ounce for the whole year, but surprisingly it reached this milestone within weeks. Vijay Valecha of Century Financial said the forecasts for gold prices are being revised upwards periodically, given the relentless rally in the precious metal. 'The consensus estimates suggest prices could rally to $3,700 an ounce by the year-end and potentially $4,000 by mid-2026. Gold's rally does not appear overblown just yet. While inflows into gold-backed ETFs (exchange-traded funds) have been on the rise, they are still well below the 2020 peak,' he said. According to the World Gold Council, gold-backed ETFs recorded an inflow of 226.5 metric tons over the first quarter, valued at $21.1 billion — the highest level since Q1 2022. By March-end, inflows had risen to 3,445.3 tons, marking the highest level since May 2023 but still below October 2020's peak of 3,915 tons.
