The rise in gold stimulates the sale of coins and bullion to stores

Gold prices continued to rise for the fourth week in a row, recording, at the end of last week, increases in values ​​that ranged between 1.25 and 1.75 dirhams per gram of various karats, compared to their prices at the end of the previous week, according to the price indicators announced in the Dubai and Sharjah markets, bringing the total The price of a gram of gold rose within four weeks to 13 dirhams.

Officials of gold and jewelry trading outlets told Emirates Al-Youm that the continued increases in gold prices for four consecutive weeks stimulated the activity of dealers selling gold coins and bullion, while the market witnessed a slowdown in demand for new jewelry.

The director of the “Dehkan Gold and Jewelry Trading Company,” Jay Dehkan, said that the continued rise in gold prices for four consecutive weeks had some effects on the markets, as the activity of selling gold coins and bullion of small and medium sizes by dealers to stores to benefit from the price differences increased, in addition to To continue sales of old-style gold jewelry.

He added: “The largest share of the sale of new gold jewelry was limited to tourist groups, while the demand from resident dealers witnessed a slowdown in demand, with many of them anticipating the return of gold prices to decline again.”

For his part, the sales official at the “Rej Gold and Jewelry” store, Manji Palikra, considered that the successive price increases in gold prices have motivated many dealers to sell gold coins and bullion to stores, to benefit from the price increases.

He said: “Some dealers in the bullion sector for investment purposes are awaiting further price rises to sell their large-sized bullion, which supports expectations of a continued pace of bullion sales in the coming days.”

He continued: “It is normal, during periods of continued price increases, that the markets witness activity in selling used jewelry to stores, followed by bullion and coins, and that the demand for purchasing new gold jewelry declines.”

As for the manager of the “Mashu Gold and Jewelry” store, Raj Bahi, he believed that the continued price increases for gold slowed down the demand for sales of new gold jewelry, but in return, the activity of selling small and medium gold coins and bullion to stores increased.

He said: “The largest share of new gold jewelry sales is currently limited to tourist groups in Dubai.”

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Gold prices

At the end of last week, the price of a gram of 24-carat gold reached 327.75 dirhams, an increase of 1.75 dirhams, compared to its price at the end of the previous week, while the price of a gram of 22-carat gold reached 303.5 dirhams, an increase of 1.75 dirhams.

In turn, the price of a gram of 21-carat gold reached 293.75 dirhams, an increase of 1.75 dirhams, and the price of a gram of 18-carat gold reached 251.75 dirhams, an increase of 1.25 dirhams.