Dubai Gold Prices Fall Pre-Akshaya Tritiya, Encouraging Shopper Demand

Key Highlights:

Dubai 22K gold price fell to Dh259 per gram pre-Akshaya Tritiya, encouraging shopper demand.

Traders witnessed robust advance bookings, at 60–70% of festival sales levels.

Offers such as zero making charges and free gold coin giveaways encouraged traffic at shops.

Key Facts:

Gold prices fell by Dh10 in 30 days, making purchasing more appealing to shoppers.

Advance orders were 70% of target, reflecting good demand.

Merchants provided incentives like no making charges and gold coin gift to draw buyers.

Background Key:

Akshaya Tritiya, on April 30, is the most propitious day to purchase gold, particularly in the Indian community. The festival coincided with a positive decline in gold prices this year, which had been trading well over $2,300 an ounce in April. On April 28, Dubai price of 22K gold fell to Dh259 per gram from an all-time high of Dh269.5 on April 12. The price fall led to more interest among residents and visitors.

Traders such as Malabar Gold & Diamonds have reported that pre-bookings of Akshaya Tritiya buys were 60–70% of their sales, and the trend has been due to the recent price fall and cultural reasons. According to Shamlal Ahmed, Managing Director – International Operations, Malabar Gold & Diamonds, if a usual day witnesses UAE gold sales of 250 kilos, on Akshaya Tritiya that becomes four times or even higher.

To capture the festive shopping spirit, shops offered different deals. One of these was the zero making charge on certain gold coins, cashback deals, and offering gold coins free on purchases made above a certain amount. Some offered pre-booking facilities where clients could pre-book the current gold prices, which served as a cushion against future price increases.

The union of auspicious prices, cultural feelings, and shopping mall offers created a fertile ground for gold buying during Akshaya Tritiya. This demand increase is a testament to the enduring cultural and economic significance of gold in the UAE, especially on lucky days such as Akshaya Tritiya.