Gold prices fell by as much as Dh4 per gram this week in the UAE, offering consumers a sense of hope before the Eid Al Adha celebrations. Analysts say that this fall may be just the start, as worldwide market pressures continue to depress the value of the yellow metal.
The small adjustment comes in the face of increasing uncertainty in the US economy, volatile interest rate expectations, and better-than-anticipated dollar performance—largely all tending to put pressure on gold prices downwards. In Dubai, 24K gold was trading at Dh281 per gram, 22K and 21K at Dh260 and Dh253, respectively.
Jewellers are complaining of a slump in visitors since purchasers delay purchases in expectation of steeper discounts nearer Eid. Most of them closely monitor the market daily in expectation of another price fall of Dh2–Dh5 to make large purchases more affordable for festive occasions and traditional presents.
If global demand for gold moderates further, or if the US Federal Reserve waits to cut rates, UAE consumers might expect even better prices in the coming days. Those thinking of making large purchases of gold might want to wait just a bit longer for possible discounts.
