‘Holiday’ and falling prices support gold jewellery sales

Gold prices fell over the weekend, with prices of gold of various carats per gram falling by Dh1.5 to Dh2 from the previous weekend, according to price indicators published by the Dubai and Sharjah markets.

Officials at gold and jewellery trading outlets told Emirates Al-Youm that the summer holidays have boosted sales of gold jewellery gifts, especially given the fall in gold prices. They added that traders have seen a trend of buying gold bars and coins, especially small-weight ones, during the holiday season this year, with the purchase rate exceeding the same period last year.

Adita Singh, sales director, Tanchik Gold Jewellery Trading Company, said, “The demand activity for gold jewellery is changing and many dealers prefer to buy small and medium weight jewellery, coins and bars as gifts in preparation for the festive season,” noting, “The reputation of gold quality in the local market encourages people to buy gifts.”

Son Dilip, sales manager at Daimo Jewellery, said, “The fall in prices and the summer holiday season have increased demand for gold jewellery gifts, most of which is concentrated in 18 carat and 21 carat.”

He added, “Most purchases are concentrated in small weights and some dealers expect a new drop in prices in the coming period.”

In the same context, Raj Bahi, store manager of “Mashu Jewelry”, said: “With the arrival of the summer holidays, the market demand for gold jewellery gifts has increased, but there has also been a change in buying patterns, with a trend towards buying gold bars and coins as gifts or for personal collections. “They are products for savings and value preservation.” He stressed that falling prices were one of the factors that stimulated demand, especially from tourists at Dubai Outlets, which continued to grow.

He explained that 18-carat accounts for the largest share of recent gold jewellery sales, particularly among dealers of Arab and European nationalities.

As of this weekend, the price of 24-karat gold per gram was 281.75 dirhams, down 1.5 dirhams from last weekend; the price of 22-karat gold per gram was 260.75 dirhams, down 1.5 dirhams.

In turn, the price of 21-karat gold per gram reached AED 251.75, down AED 2, and the price of 18-karat gold per gram reached AED 216, down AED 1.5.