UAE Gold Prices Plummet for Second Straight Week, Boosting Demand

Gold prices in the UAE have dropped for the second consecutive week, resulting in increased demand for bullion and jewelry. According to price indicators in Dubai and Sharjah, gold prices fell between Dh10.25 and Dh17.5 per gram compared to the previous week's levels.

The total decline over the past two weeks is a significant Dh28.5 per gram. The 24-carat gold price has dropped to Dh499 per gram, down from Dh517 per gram last week. Other categories have also seen declines: 22-carat gold fell to Dh462 per gram, while 21-carat and 18-carat gold prices reached Dh443 and Dh379.75 per gram respectively.

Gold retailers in the UAE attribute the increased demand to the lower prices, with many reporting a surge in sales of bullion and new jewelry purchases. Marketing Manager at Al-Rumaizan Gold and Jewellery Trading Company, Mohammed Dheeban, said that 'the recent decline in gold prices has positively impacted demand in the markets.' He added that stronger demand had increased competition among retailers, prompting stores to offer promotions and incentives.

Deputy CEO of Salem Al Shuaibi Jewellery Company, Ahmed Aneizan, also attributed the increased demand to current price levels. 'The current gold price levels are encouraging for buying,' he said, 'whether for bullion or new jewelry gifts.' He noted that discounts on making charges and promotional offers had contributed to stimulating demand.