Falling gold prices revive demand for bullion

Gold prices resumed their decline at the end of last week, with values ​​ranging between 4 and 6.5 dirhams per gram, for various karats, compared to their prices at the end of the previous week, according to price indices announced in Dubai and Sharjah.

Officials of gold and jewelry trading outlets reported to Emirates Today that the markets witnessed indicators of improvement in demand for gold bullion sales, supported by the return of the price declines recorded by the yellow metal recently, following the increases it witnessed during the previous week, expecting demand indicators to continue to grow in the coming days, especially with the circulation of reports indicating the possibility of gold recording significant price increases during the coming period.

In addition, the price of a gram of 24-carat gold reached 496.5 dirhams, a decrease of 6.5 dirhams compared to its price at the end of the previous week. While the 22-carat gram recorded 459.75 dirhams, a decrease of 6.25 dirhams. The price of a 21-carat gram reached 440.75 dirhams, a decrease of 6 dirhams. The price of an 18-carat gram reached 377.75 dirhams, a decrease of 5.25 dirhams, while a 14-carat gram reached 294.75 dirhams, a decrease of 4 dirhams.

Director of Dehkan Gold and Jewelry Trading Company, Jay Dehkan, said: “During the current period, many dealers are turning to buying gold bullion to take advantage of the decline in the prices of the yellow metal, especially in light of increasing global expectations of the possibility of gold recording price increases during the coming period, which enhances the demand for bullion, whether for savings or investment purposes.”

He added that the greatest demand is focused on medium-weight bullion, which ranges between 20 and 50 grams, due to the ease of buying and reselling it, compared to 100-gram bullion, which requires a larger budget, in addition to selling it in one go, while some dealers prefer to sell smaller quantities when prices rise.

For his part, Hussam El-Din Abdel Rahim, sales director at BTC Gold Trading Company, said, “The markets are witnessing during the current period remarkable demand indicators for gold bullion, with many dealers preferring to buy them as gold prices decline to encouraging levels.”

He added that the growing culture of buying bullion is due to the increased confidence of dealers in the yellow metal as a long-term tool for savings and investment, noting that “the greatest demand is focused on medium-weight bullion, because of the flexibility it provides in purchasing and the possibility of selling it in stages, compared to large-weight bullion.” The sales manager at Al-Fana Gold and Jewelry Trading, Daily Patten, said, “Many customers buy small-weight gold bars and use them for decorative purposes by attaching them to necklaces or bracelets, which allows for a combination of savings and decoration at the same time.”