Shoppers and investors in the UAE are taking advantage of a significant drop in gold prices, which have fallen by over $200 per ounce recently, marking the steepest decline in two years. This has led to a noticeable increase in demand, with everyday shoppers now becoming more astute investors.
As of this morning, gold prices are still under pressure at $2,568 per ounce, down by $12.88. In the local market, the price for 22K gold stands at Dh286.75 per gram, making it an appealing option for those interested in purchasing bars, coins, and jewellery.
A Shift in Strategy: From Jewellery to Investments
While gold jewellery has traditionally been a favored choice, a growing number of shoppers are now focusing on gold bars and coins for their potential as long-term investments. Many are opting for monthly payment plans and gold trading platforms to safeguard their wealth in the face of market fluctuations.
Gold dealers across the UAE have noted a marked increase in investor activity over the past 10 days, as buyers who had been waiting for price stabilization are now re-entering the market.
The Rise of Gold Trading Platforms
With the advent of digital platforms, more investors are turning to gold trading apps to buy and sell the metal in real-time. These platforms provide transparency, flexibility, and convenience, making them popular among both experienced investors and those new to the market.
Why Are Gold Prices Dropping?
Experts point to several global factors contributing to the recent decline, such as:
A stronger US dollar.
Lower-than-anticipated demand from central banks.
Profit-taking by institutional investors following recent record highs.
Gold prices, which reached nearly $2,800 per ounce earlier this year, posed a challenge for buyers. However, with prices now cooling, gold is becoming more accessible for many.
A Smart Investment Choice
Gold has traditionally been viewed as a safe-haven asset in the UAE, attracting both expatriates and residents for its ability to protect against inflation and currency fluctuations. Financial experts suggest that diversifying portfolios with gold is particularly wise in uncertain economic times.
Monthly Payment Schemes: A Game-Changer
To enhance accessibility to gold investments, jewellery retailers and banks in the UAE have rolled out monthly instalment plans, enabling buyers to acquire gold gradually. This initiative has opened opportunities for young professionals and middle-income families to engage in gold trading without hefty upfront expenses.
The Road Ahead
Although gold prices may continue to vary, the current dip presents a unique chance for UAE residents to purchase at lower prices. Financial analysts anticipate that demand for gold in the UAE will stay strong, driven by:
The cultural importance of gold in weddings and festivals.
A rise in investment-focused products like ETFs and bullion.
An increasing recognition of gold as a means of preserving wealth.
As one investor put it: “Gold is not just a luxury—it’s a necessity in today’s uncertain world.”
