By Business Reporter
Dubai: Gold shoppers in the UAE have got another price shock – the Dubai gold rate has risen by nearly Dh3 to Dh382.75 a gram for the popular 22K version. This means the local price is just Dh1 away from its all-time high, which came in June last.
The latest increase will severely affect demand during a crucial period with the south Indian festival of Onam coming early September. “Our forecasts for early September were for Dubai prices to be around Dh370, even go down to Dh365-Dh366,” said a gold retailer. “We never saw a return to Dh380 plus levels.”
This week, the UAE gold rate for 22K has gone up by over Dh6 per gram.
Coming days will see how UAE shoppers react to the new season’s first gold and jewellery promotions.
“The hope is that global gold prices will settle down by late October at the very least,” said the retailer. “Because the final weeks of October are when Diwali and Dhanteras happen, and we need bumper sales to make up for a bad sales year so far.”
In the metals market, gold closed the week with a strong $30 rise to $3,447 an ounce, with more investors buying the asset ahead of the mid-September interest rate cut in the US. (US rate cuts always bring about a boost for gold prices.)
In the coming week, there will be fresh uncertainty in the markets after a court in the US deemed President Trump’s reciprocal tariffs to be illegal. Investors need to expect more choppiness in the markets through this period.
And when there is market turmoil, gold becomes the asset to be carrying a lot more of.
Source: Gulf News
