17 dirhams increase in the price of a gram of gold within two weeks

Gold prices continued to rise for the second week in a row, recording increases at the end of last week that ranged between 4.75 and 7.75 dirhams per gram of various karats, compared to its prices at the end of the previous week, according to price indices announced in Dubai and Sharjah, bringing the total price increases for the yellow metal during two weeks to 17 dirhams.

Officials of gold and jewelry trading outlets told Emirates Today that the continued rise in prices of the yellow metal, and its reaching record levels, contributed to a state of slow demand for jewelry and bullion products, supported by the preoccupation of many dealers with the beginning of the month of Ramadan, pointing out that the largest proportions of demand were concentrated in tourist sales.

In addition, the price of a gram of 24-carat gold reached 615.25 dirhams, an increase of 7.75 dirhams, compared to its prices at the end of the previous week. While the price of a 22-carat gram was 569.75 dirhams, an increase of 7.25 dirhams. The price of a 21-carat gram reached 546.25 dirhams, an increase of 7.25 dirhams. The price of an 18-carat gram reached 468.25 dirhams, an increase of six dirhams, and the price of a 14-carat gram reached 365.25 dirhams, an increase of 4.75 dirhams.

For his part, Mangesh Balkera, the sales official at Reggie Gold and Jewelry Trading, said, “The continued rise in gold prices and recording record prices has contributed to many dealers postponing the decision to purchase gold jewelry, especially since the increases came primarily within high price limits.”

He added, “Most of the purchases currently in the markets are concentrated in tourists’ demand to buy gifts of gold jewelry and jewellery, the largest shares of which are concentrated in products made of small pieces.”

For his part, the manager of the “Ricky Gold and Jewelry Trading” store, Ricky Dahnak, said, “The arrival of gold prices to record levels during the recent period has made many dealers currently reluctant to buy bullion with the expectation that prices will return to decline again,” pointing out that “the markets are also witnessing a slowdown in demand for jewelry sales.”

He added, “The markets usually witness signs of calm in demand for handicraft sales at the beginning of Ramadan, with most dealers busy with the rituals of celebrating the holy month, and the price increases came to increase the slowdown in demand for handicrafts.”

The sales official at the “Daymo Gold and Jewelry Trading” store, Dale Son, pointed out that “the rise in gold prices at significant rates makes many dealers prefer not to buy or sell bullion products, while anticipating prices in the hope that prices will stabilize at high rates for sale, with the aim of selling bullion products or to decline with the aim of buying.”

He explained that “the concentration of the largest shares of handicraft sales in demand by tourists comes in light of many dealers in local markets postponing purchases in light of the large price increases.”