All Gold lovers who haven’t been buying gold for a while, there’s great news for you! Gold prices in Dubai have dropped to their lowest level in weeks, offering a much-needed price relief to consumers. Just as the long Eid holidays in the UAE wrap up, the lower gold prices offer a wonderful opportunity to stock up on the yellow metal before the bullion again starts climbing.
Big Price Cuts at UAE Jewellery Shops
While huge buying activity during Eid Al Fitr may have contributed to the upward trend, analysts believe that a weaker US dollar coupled with developments on trade wars was making the yellow metal pricier. Retail rates across the stores and souks posted a decline of approximately Dh2.50 per gram with the 24-karat gold selling at Dh154.50 per gram, down by 1.6 per cent from Dh157 last May 20. The price of 22K dipped to Dh151, while 24K slumped to Dh154.25. However, analysts are betting on the bullion to rally again over the next few days and 22K gold in the UAE could very well hit Dh148.45 per gram.
Best Place to Buy Gold in Dubai – Gold Souk
Dubai’s Gold Market is the largest gold market in the world. And the Gold Souk is certainly the best place for gold buyers. With endless retailers all around, you can never go wrong with the Deira Gold Souk. Gold all lined up from aisle to aisle! Who wouldn’t get attracted just for the fun of it! Located in the heart of ‘old Dubai’ near the Creek, this is a jewelry lovers’ paradise bursting with everything from bars and bullion to bracelets and brooches. Assortments include imported designs of Indian and Arabic styles, as well as modern European and even Italian fashion. You can find a variety of gold, silver, diamond, other precious metals and stones too.
Gold Prices Drop as US Dollar Strengthens
Gold has been trading significantly lower compared to a couple of weeks ago. While the US dollar index moved slightly higher on the back of concerns about the parliamentary elections in Europe, gold prices fell in UAE. According to analysts in Indosuez Wealth Management, the precious metal still moves towards a positive direction and is expected to break out of the $1,235 to $1,345 range.
Increase in Gold Sales in UAE
Gold is of great importance in UAE’s economy. There are about 4,086 companies operating in the gold sector. And Indians are the leading buyers of gold. They rank in the top 10 nationalities investing in Dubai’s gold sector followed by the citizens of Pakistan, Britain, Saudi Arabia, Switzerland, Oman, Jordan, Belgium, Yemen and Canada. Last year, the total sale of gold and diamond jewellery reached AED 274 billion last year. According to the Dubai Gold and Jewellery Group, this was an increase of about 3% compared to that in 2017. Also, trade in gold and precious stones has grown significantly in recent years. UAE’s foreign trade in this sector is estimated at about AED 400 billion annually. The import of gold was valued at AED 142.4 billion, while the value of exports amounted to AED 75.9 billion, and the value of re-exports to AED 26 billion, according to the Federal Customs Authority.