Prime Highlights:
- Dubai 22K gold price fell to Dh352 per gram, the lowest in 30 days.
- Consumers are even wary even as prices crashed, waiting for further cuts before purchasing.
Key Facts:
- Gold prices globally fell more than $70 per ounce in the last four days.
- Local dealers mention a cautious buying attitude from consumers, the majority waiting for the price to fall below Dh340 per gram before purchasing.
Key Background:
Dubai’s gold bullion market has witnessed a spectacular drop in price, with 22K gold dipping to Dh352 per gram, a record low within the last month. This follows a spectacular drop in world gold prices, which have dropped by more than $70 per ounce within the last four days. But the local demand has failed to pick up, and individuals are still not keen on purchasing as uncertainty still hangs heavily over prices.
The purchasers have been observed modifying their purchasing behavior; even after easing in gold prices, the purchasers like to wait and see the prices ease and come to a reasonable rate before they undertake a purchase. For a foray to create demand, a few dealers have ventured with proposals, such as waived or reduced making charges. These proposals have not really accelerated sales, since the purchasers are still apprehensive.
The pressure is because of the existing price volatility where gold prices fell in the short term only to recover, and the majority of clients have been disturbed by short-term purchases. Such unpredictability has deprived Dubai gold jewellery prices of their glamour despite them still remaining cheap owing to comparatively low making charges.
This is answered by retailers emphasizing their cost leadership in manufacturing to counter customers’ affordability issue in general with respect to price adjustment. Nonetheless, the market remains low-key as most of the customers expect improved prices in the near future.
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