Gold markets are witnessing “cautious buying” and “anticipation” of expected declines

Gold prices recorded increases at the end of last week, ranging between 13.25 and 22.25 dirhams per gram of various karats, compared to prices at the end of the previous week, according to price indicators announced in the Dubai and Sharjah markets.

Officials of gold and jewelry trade outlets told Emirates Today that the return of gold prices to rise after a successive series of declines contributed to the slowdown in demand for gold jewelry, and the implementation of cautious purchases in the bullion sector, with dealers postponing purchasing decisions during the current period, in anticipation of the yellow metal recording price declines, stressing that “anticipation” and “caution” have become characteristics of dealers, whether in the bullion or gold jewelry sector.

Director of the Dahkan Gold and Jewelry Trading Company, Jay Dahkan, said, “The return of gold to record price increases after four weeks of successive declines affected dealers by postponing purchasing decisions, which in turn contributed to the slowdown in demand for gold jewelry.”

He added to “Emirates Today”: “In light of the rapid changes taking place in the global gold markets, many dealers are currently accepting cautious purchases of gold bullion of medium and small weight categories.”

For his part, the sales official at the “Mash Gold and Jewelry Trading” store, Raj Bahi, said, “The markets are witnessing a slowdown in demand for jewelry during the current period, due to the recent increases in the prices of the yellow metal.”

He stressed that “many dealers are postponing purchasing decisions in anticipation of prices returning to stimulating declines, as happened during the last period, with cautious purchases of bullion products, especially of medium weights.”

In the same context, the director of the Dehkin Gold and Jewelery Trading Store, Ashok Poet, agreed that “the markets are witnessing limited purchases of gold jewelry during the current period with the significant price increases for the yellow metal.”

He stressed that “anticipation and caution have become characteristics of dealers during the current period, whether in the bullion or gold jewelry sector, after gold returned to the process of price increases again, after a successive series of declines during the recent period.”

Gold prices

The price of a gram of 24-carat gold at the end of the week reached 563.5 dirhams, an increase of 22.25 dirhams, compared to its price at the end of the previous week, while the price of a gram of 22-carat gold recorded 521.75 dirhams, an increase of 20 dirhams.

In turn, the price of a gram of 21-carat gold reached 500.25 dirhams, an increase of 19.75 dirhams. The price of a gram of 18-carat gold reached 428.75 dirhams, an increase of 16.75 dirhams, while the price of a gram of 14-carat gold reached 334.5 dirhams, an increase of 13.25 dirhams. A dirham.