Over the past week, gold prices have surged by nearly $100 per ounce, which corresponds to an increase of approximately Dh12.75 per gram for 22K gold. Despite these significant price gains, there seems to be little disappointment among shoppers in the UAE, and retailers are also content.
For UAE consumers who purchased or placed advance orders for gold between September 29 and October 8, the price rally has been especially satisfying. During this ten-day period, gold prices were trading in the range of $1,820. In the first week of September, there was a sense that gold prices might fall below $1,800.
The shift occurred on September 7, following the outbreak of hostilities between Israel and Hamas, which triggered a gold price rally. Prices briefly reached $1,934, their highest level since September 18. Presently, it’s possible that these price levels could be retested, with the potential for a further rise towards $1,950.
According to gold jewelry retailers, it appears that a significant number of UAE shoppers advanced their gold purchases, particularly for the upcoming festival season, including Diwali and Dhanteras in mid-November. Shoppers today are more inclined to make purchases without waiting for market fluctuations and buy at the first sign of a price dip.
Between October 6 and October 15, gold rates in the UAE have increased by Dh12.75 per gram. This price rise has essentially halted the demand of resident shoppers, who were anticipated to buy gold during the festival season. However, some hope remains that tourists may still find the current prices favorable for making purchases.
Many purchases made in the first week of October are expected to reflect on or around November 15, as shoppers put down a 10 percent payment with the commitment to complete the purchase during the festival season next month. Diwali falls on November 12 this year, while Dhanteras is on November 10.
The UAE gold market has potentially witnessed a full month’s worth of buying or booking activity during the first week of October, and shoppers have recognized the value of price lock-in schemes.