UAE Gold Prices Fall for Second Straight Week Amid Bullion Bar Buying Surge

Gold prices in the UAE have fallen for the second consecutive week, with prices dropping by AED21 per gram over two weeks. The price of a gram of 24-carat gold has declined to AED533.75, down from AED536.75 last week. Retailers say that falling prices have boosted demand for small and medium-sized bullion bars.

Retailers such as Riki Gold and Jewellery Trading's Director Rikesh Dhanak said that the continued drop in prices has stimulated demand for small and medium-weight bullion bars, but overall demand remains subdued. 'Although demand has returned to the market with the decline in prices, it remains limited, as many traders are waiting for further price reductions in the coming period,' he said.

Demand for gold jewellery remains weak, according to Raj Bahi, Sales Manager at Mashu Gold and Jewellery Trading. He noted that periods of significant price declines typically lead to stronger demand for both bullion and jewellery, but current demand for bullion remains limited due to investors delaying purchases in anticipation of further price falls linked to developments in international markets.