UAE Gold Prices Plummet Amid Sluggish Demand
Gold prices in the UAE have taken a hit, dropping by as much as Dh18 per gram for 24-carat gold. The decline in prices has not yet translated to increased demand for gold jewellery and bullion, according to retailers.
The price of 24-carat gold fell to Dh536.75 per gram, while 22-carat gold dropped to Dh497 per gram. Meanwhile, 21-carat gold declined to Dh476.75 per gram, 18-carat gold fell to Dh408.5 per gram, and 14-carat gold dropped to Dh318.75 per gram.
Retailers attribute the subdued demand to customers returning from summer holidays and prioritising back-to-school expenses. 'The recent decline in gold prices was significant and encouraging, but its impact has not yet been reflected in market activity,' said Jay Dehkan, Director of Dehkan Gold and Jewellery Trading Company.
Dehkan added that demand for gold products remained slow due to the current period coinciding with customers returning from summer holidays. Rakesh Dhanak, Director of Rakee Gold and Jewellery Trading Company, also noted that markets are currently witnessing weak demand for gold jewellery and bullion despite recent price declines.