Gold registers over $ 20 gain in 5 days: will UAE consumers try to make money by selling?

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Gold is off to a good start by 2022, but the price gains will disappoint buyers.
Image credit: Reuters

Dubai: Gold prices didn’t wait long to soar off the charts at the start of the new year, with international prices early Monday at $ 1,825 an ounce. This shows a gain of $ 20 an ounce since December 29. Dubai’s gold rate is MAD 208.25 per gram, which dampens the hopes of jewelry buyers of certain purchases at the start of the year at favorable rates.

For many consumers in the UAE who own gold jewelry, this turns out to be a good time to cash in or update their collections. Jewelry retailers encourage gold exchange promotions and offer manufacturing fee discounts on any new purchase to keep buyers / sellers interested.

December was a relatively good month for gold retailers in the UAE, with tourist shopping providing much needed support. In addition, prices for most of the month were below $ 1,800 per ounce (around Dh202 to Dh203 per gram at the Dubai gold rate), and this was a level that appealed to buyers.

“Tourists have been the driving force behind the gold retail trade since October, but current levels of Dh208-Dh209 per gram may be too high for most to buy,” said one retailer. “The only way out is for the prices to cool down soon. “

Another January high

Compared to January 1, 2021, today’s prices are quite low. A year ago, gold was hitting jaw-dropping levels of $ 1,893 an ounce, still fresh after hitting an all-time high of $ 2,074 in early August 2020.

Are the prices going to go down?

Analysts suggest there may be some resistance if international bullion prices reach levels of $ 1,835. A sharp drop to $ 1,750 is not considered a possibility at this time.

For most of 2020, gold prices were between $ 1,795 and $ 1,810, and overall buyers in the UAE had come to terms with the fact that they were unlikely to see levels below $ 1,700 anytime soon. But anything over $ 1,820 will force them to take a break from any plans to buy.

“Resident buyers have been inactive for the last 10 days of December as prices increased,” the retailer said. “Tourist purchases have been offset, but an increase of over $ 20 an ounce in five days will likely reach that, too. “


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