Prime Highlights:
- The Dubai gold price fell by almost Dh11 per gram in one day.
- Despite the fall in price, buyers are waiting for prices to fall further before they make a purchase.
Key Facts:
- The Dubai price of 22K gold fell to Dh254.25 per gram from Dh265.25.
- Gold prices in the international market are moving towards $2,300 an ounce, and local prices are being affected by it.
- Dealers are providing “book now, buy later” facilities to attract cautious buyers.
Key Background
Gold rates in Dubai have recorded dramatic drops over the last few days, with the huge fall of close to Dh11 per gram in a matter of 24 hours. The drop lowered the 22K gold price to Dh254.25 from the former rate of Dh265.25 per gram. Yet, neither this drop nor any drop up to now has motivated a great number of customers to wait for further falls to place their orders.
The price volatility in gold is highly reliant on global economic realities. Globally, gold is trading at around the $2,300 per ounce level due to a combination of reasons such as fear of inflation and geo-political tensions. All these directly affect local markets such as Dubai, where gold is a popular investment product as well as gift, particularly during festivities such as Eid.
Dubai malls are trying to achieve higher sales by embracing flexible shopping plans. For example, is the “book now, buy later” offer where consumers can book today’s prices and pay for orders upon a lapse of time. The practice will instill confidence among the customers that they would not miss good rates if they wait before making their purchases.
But whether these strategies will bring success remains to be seen. Most consumers are still waiting to see more drop in prices before making a purchase. That is an opportunistic stance, especially with recent market volatility in the gold market. Experts say that while short-term adjustment is inevitable, overall prices of gold continue to be on the rise due to ongoing global uncertainties.
Brief and concise, even Dubai gold price drop recently presents an opportunity to buy for the customer, yet not many are waiting for lower rates. The sellers are trying back with innovative incentives to buy, but the market waits.
