Record lows encourage buying gold during Eid al-Fitr

On the first day of Eid al-Fitr, gold prices recorded new record lows, considered the highest in its history, with values ​​ranging between 31 and 52 dirhams per gram of various karats, compared to their prices at the end of the previous week, according to price indicators announced in the Dubai and Sharjah markets, so that the prices of the yellow metal continued to decline for the third week in a row, achieving total declines amounting to 74.5 dirhams per gram in three weeks.

Officials of gold and jewelry trade outlets told Emirates Al-Youm that the price declines in gold are the largest weekly for the yellow metal in terms of value, stressing that they have contributed significantly to supporting customers’ demand to buy gifts of gold jewelry on Eid al-Fitr, which in turn will affect the stimulation of sales at large rates. They expected to “Emirates Today” that the pace of demand for gold bullion will also increase in the coming days.

The director of Dahkan Gold and Jewelry Trading Company, Jay Dahkan, said, “The decline in gold prices at significant rates, considered the highest weekly in terms of value in its history, was one of the strong incentives that supported the increase in customers’ demand for buying gold jewelry as gifts on the occasion of Eid al-Fitr.”

He added: “The major record decline recorded by the yellow metal will have positive repercussions on the markets, by stimulating sales at large rates during the days of the Eid al-Fitr holiday,” expecting that the markets will also witness great activity in demand for gold bullion, whether for savings or investment purposes.

For his part, the sales manager at the “Al Sarraf Jewelry” store, Abdullah Muhammad Ali Al-Tahami, said, “The markets are currently witnessing a growth in customers’ demand to buy gifts of gold jewelry on the occasion of Eid Al-Fitr, supported by the significant price declines that the yellow metal recently recorded.”

He added: “It is expected that the length of the Eid al-Fitr holiday period, along with the record price declines for gold, will contribute to stimulating levels of demand for sales of gold jewelry at significant rates,” pointing out that many dealers were postponing purchasing decisions until recording appropriate stimulating price declines.

In the same context, the manager of the “Dahkin Gold and Jewelry Trading” store, Ashok Poet, said, “The continued decline in prices of the yellow metal over the course of three consecutive weeks had positive effects on the demand for gold jewelry in the markets, especially with many dealers heading to buy Eid al-Fitr gifts.”

He stressed that “many stores are counting on this period to stimulate their sales at significant rates, especially in keeping with the significant price decline of the Eid al-Fitr season and the length of the Eid holiday period, which allows customers to visit the markets at multiple intervals.”

He explained that “demand rates for gold jewelry are rising compared to bullion, but bullion is expected to witness an increase in demand in the coming days, with many dealers in that sector preferring to await prices before purchasing.”

Gold prices

The price of a gram of 24-carat gold yesterday, which fell on the first day of Eid al-Fitr, reached 561.5 dirhams, a decrease of 52 dirhams compared to its prices at the end of the previous week, while the price of a gram of 22-carat gold recorded an amount of 520 dirhams, a decrease of 48.25 dirhams.

In turn, the price of a gram of 21-carat gold reached 498.5 dirhams, a decrease of 46.25 dirhams, and the price of a gram of 18-carat gold reached 427.25 dirhams, a decrease of 39.75 dirhams. As for the 14-carat carat, it recorded 333.25 dirhams per gram, a decrease of 31 dirhams.

Gold globally

Gold prices are heading for a decline for the third week in a row, under pressure from the strength of the dollar and the Federal Reserve’s tendency to tighten monetary policy, which has weakened hopes for lowering interest rates in the near term.

Gold in spot transactions increased by 0.2% to $4,657.50 per ounce, while the precious metal fell by more than 7% since the beginning of the week until now.

US gold futures for April delivery rose 1.1% to $4,657.90.

As for other precious metals, silver in spot transactions increased 0.1% to $73 per ounce, while the price of platinum in spot transactions rose 0.1% to $1,972.80, and palladium rose 0.4% to $1,452.21.