UAE citizens and visitors flood gold shops as prices decline

Some retailers claim a 20% increase in demand

As gold prices fall, gold traders report a sharp increase in demand for the precious metal. Following the price drop, Eid Al Adha, the summer holidays, and the pent-up market following the pandemic, some retailers are reporting a 20% increase in demand.

According to Joy Alukkas, chairman and managing director of his own jewelry line, the majority of consumers are UAE citizens, tourists, and people traveling through the country on their way to the US, Canada, and the UK. “The majority of consumers purchase gold jewelry for wear and investment,”he said. The number of customers buying bars from our outlets is declining.

On Thursday morning in the UAE, gold prices dropped more than Dh2 per gram and were trading very near a one-year low. According to data from the Dubai Gold and Jewellery Group, 24K traded for Dh205.0 per gram on Thursday morning, down from Dh207.25 at the previous day’s end. On Friday, the price of a gram of 22K rose sharply, from Dh192.50 to Dh194.25

Kanz Jewels’ managing director, Anil Dhanak, stated: “Despite the summer heat, we are noticing individuals ready to visit our stores and acquire jewelry. Our retail clients are taking full advantage of these cheaper pricing.”

Investors are aware that this drop may just be momentary, according to Dhanak, who predicted a recovery to the $1800s. Everyone’s portfolio will include have assets like gold during these difficult times, he said.

Dhanak claimed that the demand for gold, particularly 24k investment bars, is growing “We are seeing a big number of purchasers enter the market to de-risk their portfolio, even with a modest increase in the price of gold for an ounce,” he explained.

The beginning of the summer holidays and the price drop, according to Chirag Vora, director of BaflehJewellery, have helped to enhance sales. When returning home for the holidays, people typically acquire gold, especially those from the subcontinent. Sales have increased as a result of this year’s reduced price, which has benefited vacationing gold travelers.

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