Dubai: The Dubai gold price dropped by almost Dh 11 in just one day, which is one of the biggest drops in weeks. With the Dubai gold price drop, many shoppers in the Emirates are still waiting to see whether the prices will drop even more before they decide to make their next gold purchase.
The current local price of 22K gold per gram is Dh 367.75, which was Dh 378.5 on May 7. The major drop in per-gram gold rate was observed in just one day, as the price on May 7 was very close to Dh 381.75 per gram, the highest price reached this week.
Many shoppers are thinking of buying gold in Dubai if the prices fall even more to around Dh 350 to Dh 355 per gram. Explaining gold jewelry buyers’ current sentiments, a gold retailer said that for shoppers, anything above Dh 370 is too pricey and high, and they do not wish to buy gold at these prices. He added that they only made an exception on April 30 because of the Akshaya Tritiya occasion, when the 22K gold rate in Dubai per gram was Dh 369.
Will Dubai Gold Prices Fall Even More in the Coming Days?
An even greater fall in Dubai gold prices is expected in the coming days. A gold retailer said the emerging trends are giving hints that the Dubai Gold Rate will reach almost Dh 360 per gram, and there is a great possibility that it will fall even more to Dh 355. He added that the gold price falling back to Dh 350 will be difficult. In fact, the lowest Dubai gold price recorded in the last 30 days was Dh 351.25 on April 10.
Will the Weekend Rush Boost Gold Sales?
The recent drop in Dubai gold price is enough to attract visitors to the Gold Souq and jewelry outlets at shopping malls and street shops. Kanz’s Managing Director, Anil Dhanak, said they have observed that most tourists buy new gold jewelry. He added that out of every 10 purchases made at their stores, one or two involve the exchange of old gold for new.
Unlike tourists, the Emirati residents prefer to buy gold jewelry again when the gold prices go down further, as they have the advantage of waiting for the right price for buying gold, he added.
The price drop in gold has attracted tourist shoppers, but UAE residents are waiting for bigger drops before they make any new purchases. Most price-conscious gold buyers have stopped their purchases and are thinking of holding it further, as they are waiting for major drops.
Much like how many entrepreneurs wait for the right market conditions, the best startup story often involves patience and strategic timing before making a big move.
With the current drop in the Dubai gold rate, now the question being raised is whether a further price drop of almost Dh 360 will attract them again. Or will a major drop in 22K gold per gram to around Dh 350 make them interested again?
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