Low prices and New Year gifts stimulate sales of gold jewelry and coins

Gold prices fell at the end of last week between 14.5 and 24.25 dirhams per gram of various karats compared to their prices at the end of the previous week, according to price indices announced in Dubai and Sharjah. These declines come after successive record increases achieved by the yellow metal during the recent period.

Officials of gold and jewelry trade outlets reported to Emirates Today that the decrease in prices and the demand of some resident and tourist dealers to buy gifts on the occasion of the beginning of the new Gregorian year contributed to the improvement in demand for sales of gold jewelry and coins compared to previous periods, expecting the improvement rates to continue in a limited manner during the coming days, with many dealers anticipating a further decline in demand for purchases at greater rates.

In addition, the price of a gram of 24-carat gold reached 522 dirhams, a decrease of 24.25 dirhams at the end of last week, compared to its prices at the end of the previous week. While the price of a 22-carat gram amounted to 483.25 dirhams, a decrease of 22.5 dirhams. The price of a 21-carat gram reached 463.5 dirhams, a decrease of 21.5 dirhams. The price of an 18-carat gram reached 397.25 dirhams, a decrease of 18.5 dirhams, while the price of a 14-carat gram reached 309.75 dirhams, a decrease of 14.5 dirhams.

For his part, Director of Dehkan Gold and Jewelry Trading Company, Jay Dehkan, said, “There is a demand from some customers, whether residents or tourists, to buy gifts on the occasion of the beginning of the new Gregorian year, in addition to the price declines recorded by the yellow metal during the recent period, which contributed to improving the growth rates of demand for sales of gold jewelry compared to previous periods.”

He added, “Gold bullion and coins witnessed limited demand indicators, with many dealers anticipating further price declines, because the record increases recorded by the yellow metal during the past periods put it at high price limits, despite the recent declines.”

For his part, the director of the “Rikesh Gold and Jewelry Trading Company”, Rikesh Dhanak, considered that “despite the improvement in demand indicators for sales of gold jewelry, with the support of some dealers’ interest in buying gifts at the beginning of the new calendar year, they are still among the limited improvement rates for sales compared to the purchase rates during the similar time period last year.”

He explained that “sales did not increase at greater rates, despite the presence of incentives, such as the occasion of the beginning of the new Gregorian year, and the presence of significant price declines, due to the anticipation of most dealers for greater price declines, especially since the yellow metal recorded historic record increases during previous periods.”

In the same context, the manager of the “Mashu Gold and Jewelry Trading” store, Raj Bahi, pointed out that “sales of gold jewelry and coins witnessed growth and improvement compared to previous periods, as a result of the interest of tourist groups and some resident dealers to buy gifts of jewelry and coins on the occasion of the beginning of the new Gregorian year, in addition to the stimulating price declines recorded by the yellow metal.”

He added, “Bullion witnessed limited rates of demand compared to previous periods, with dealers in the bullion sector anticipating discounts at additional rates to encourage greater demand for purchases.”

. Bullion witnessed limited demand rates compared to previous periods, with dealers anticipating discounts of additional percentages due to greater demand for purchases.

. The yellow metal recorded historic record increases during previous periods.