Gold rates in Dubai have fallen, with the price of 22K gold in Dubai costing AED352 per gram, marking its lowest point in the past month. This drop follows a significant decrease in global bullion rates, resulting in a local price reduction of AED8.25 in the last 24 hours, reports Bloomberg.
Despite this price dip, many UAE shoppers are still hesitant to make purchases. They are hoping for prices to fall further, recalling levels seen in March when gold traded below AED340 per gram.
Jewellery retailers report a lull in buying activity, suggesting that even offers like reduced or waived making charges have not yet spurred demand. There’s a prevailing sentiment among consumers that the Dubai gold rate has the potential to decrease even more.
A gold wholesaler suggests that a more “realistic” price for gold would be in the range of $3,000-$3,100 per ounce, noting that the current level is around $3,150. This difference is causing some shoppers to adopt a wait-and-see approach.
However, Anil Dhanak of Kanz Jewels points out that purchase decisions are often driven by personal occasions like weddings and anniversaries, and that a rush to buy may not immediately follow a price drop. He believes that without an immediate need, consumers are likely to remain patient.
