Last Updated on: 9th July 2023, 11:12 pm
Dubai Residents Stop Buying Gold As The Price Hits its Highest Level in A Year
The gold and jewelry industry in Dubai is reportedly seeing a drop in sales as residents avoid shopping. The fall in demand comes on the back of the recent rise in gold prices, which hit a yearly high of $2,000 an ounce this week.
Retailers in Dubai said UAE residents are also holding on to their gold holdings as they expect prices to continue to rise and bring them more profit.
Gold hit $2,020 an ounce on Wednesday, marking its highest price this year. On Friday morning, however, prices collapsed, with gold trading at $2,007.79 an ounce, indicating a 0.63% drop from its previous price.
Thursday’s closing price of 24,000 gold was AED242.75 per gram, while 22,000, 21,000 and 18,000 gold were trading at AED224.75, AED217.5 and AED186.5 per gram, respectively.
These rates illustrate a variation in gold prices in the region, which have been volatile due to a variety of factors including global economic conditions, geopolitical tensions, and market demand.
As investors closely monitor the market, analysts are predicting that gold prices will continue to see ups and downs in the near future.
Malabar Gold & Diamonds Director General of International Operations Shamlal Ahamed said customers are not selling their jewelry despite the surge in gold prices.
He also stated that buying has slowed down lately, but that will change due to the upcoming Eid, which will have a favorable impact.
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