High gold prices stimulate the purchase of bullion and “gold coins”

Gold prices rose at the end of the week’s trading between 7.75 and 9.75 dirhams per gram of various karats, compared to their prices at the end of last week, according to price indicators announced in Dubai and Sharjah, while the rise comes after two weeks of successive decline recorded by the yellow metal. The total increase in the price of a gram reached 12.75 dirhams within two weeks.

Officials of gold and jewelry trading outlets told Emirates Al-Youm that the yellow metal’s continued recording of new increases contributed to the revitalization of bullion trade in the markets in a remarkable way, whether in terms of bullion purchase transactions or dealers selling bullion in their possession to stores.

In addition, the price of a gram of 24-carat gold reached 492.25 dirhams, an increase of nine dirhams, compared to its prices at the end of last week. While the price of a 22-carat gram was 455.50 dirhams, an increase of 7.75 dirhams. The price of a 21-carat gram reached 436.75 dirhams, an increase of 9.75 dirhams. The price of a gram of 18-carat gold reached 374.50 dirhams, an increase of 8.75 dirhams.

The sales manager at the “Basalt Gold and Jewelry Trading” store, Ali Al-Yafei, said, “The rise in gold prices contributed significantly to shifting the market’s direction towards bullion trading, as the markets witnessed remarkable activity in the desire of a number of dealers to buy bullion and gold coins, for the purposes of saving or investment.”

He added, “Dealers’ purchase of bullion at large rates during the current period comes in light of the spread of many expectations of future increases in the prices of the yellow metal, during the coming periods, at large rates.”

For his part, Dilip Patni, sales manager at Al Fanan Gold and Jewelery Trading, said, “The local markets are currently witnessing remarkable activity in the trade of bullion and gold coins, whether in terms of the activity of some dealers selling products they have to stores to take advantage of the price increases, or in terms of dealers heading to buy new products in the hope that gold prices will continue to rise at greater rates during the coming period.”

He explained that “the current focus of purchasing activity on bullion and currencies comes in light of the high levels of awareness and confidence among dealers in using these products for savings purposes, following the previous record highs recorded by these products.”

The sales manager at the “Al Sarraf Jewelry” store, Abdullah Muhammad Ali, pointed out that “the largest shares of transactions in the markets during the current period are concentrated in the demand for purchasing bullion of various categories and weights.”

He added, “The rise in gold prices has stimulated many traders to buy these products, with global expectations and reports indicating the possibility that the prices of the yellow metal will rise at greater rates during the coming period.”