Gold prices experienced a decline of Dh1.75 per gram as markets in Dubai commenced trading on Monday, marking the first trading day of the week. According to data from the Dubai Jewellery Group, 24K gold was trading at Dh331.0 per gram, a decrease from Dh332.75 per gram at the close of markets last week. Similarly, other gold variants also saw a drop in early trading in Dubai, with 22K, 21K, and 18K trading at Dh306.5, Dh296.5, and Dh254.25 per gram, respectively.
Last week, gold prices reached an all-time high both in Dubai and globally, driven by geopolitical tensions in the Middle East and robust buying from China. Spot gold was trading at $2,735.71 per ounce, down by 0.5 percent. The decrease in prices is anticipated to benefit shoppers in Dubai and the UAE, especially ahead of the Indian festivals of Diwali and Dhanteras later this week. During these festivals, a significant number of Indians purchase gold and precious metal jewelry, considering it auspicious.
Dubai, widely recognized as The City of Gold, is witnessing a surge in foot traffic at its world-renowned Gold Souk, including its extension. Rashid Al Harmoodi, Senior Director for Property Management at Ithra Dubai, noted that the Dubai Gold Souk – The Extension experiences a notable increase in local and international customers ahead of high-demand occasions like Diwali and Dhanteras. "With 300 retailers offering an unparalleled selection of the finest gold and jewelry, combined with unmatched expertise, we ensure our visitors an extraordinary shopping experience and access to the best in the market. These festive moments are pivotal in reinforcing the Dubai Gold Souk – The Extension's position as a global leader in gold trading, solidifying its status as the ultimate year-round destination for gold and fine jewelry," he stated.
Alex Kuptsikevich, Chief Market Analyst at FxPro, observed that gold continued to reach all-time highs in the first half of last week, peaking at $2,758 per ounce in the spot market. However, the price subsequently retreated and remained off the peak as caution grew towards the end of the week. "We wouldn’t be surprised to see a pullback to the $2,670-$2,700 range in the upcoming week. This won’t disrupt the strong bullish trend. But a decisive break below will prompt us to be cautious in anticipation of a deeper pullback," Kuptsikevich added.
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