UAE: Residents, tourists throng gold shops as prices fall

UAE: Residents, tourists throng gold shops as prices fall

Some retailers reporting 20 per cent hike in demand

Published: Fri 22 Jul 2022, 8:15 PM

Gold traders report a steep demand hike for the precious metal as prices decline. Some retailers are reporting a 20 per cent hike in demand following the price fall, Eid Al Adha and the summer holidays and the pent-up market after the pandemic.

Most buyers are UAE residents, tourists, and transit passengers en route US, Canada, and the UK, said Joy Alukkas, chairman and managing director of his namesake jewellery brand. He said, “Most shoppers purchase gold jewellery for use and investment. The trends of people purchasing bars from our stores are not as much.”

Gold prices fell more than Dh2 per gram in the UAE on Thursday morning, trading close to a one-year low. The Dubai Gold and Jewellery Group data showed 24K trading at Dh205.0 per gram on Thursday morning compared to Wednesday’s close of Dh 207.25 per gram. Prices spiked from Dh192.50 a gram for 22K to Dh194.25 on Friday.

“The Friday spike in prices did not really impact the demand, to be honest. The trend compared to last year has been extremely positive since Akshaya Tritiya (celebrated on May 3). The post-pandemic demand has been