Dubai: Gold is again turning too expensive for most jewelry shoppers in the UAE, breaking past the $1,600 an ounce barrier. The Dubai Gold Price, as of early Wednesday, was at Dh181 a gram for 22K - a level that price-sensitive buyers will shy away from.
As of 10:10, the metal was trading at $1,603.82 an ounce, and in the last 30 days the price has shot up by $41.20 (or 2.6 percent). Over the last six months, gold has put on nearly $100 an ounce.
Industry sources, however, reckon that it will slip below $1,600 through the course of the day. "For now, at least, It will need some really big global development to see prices sustain above $1,600," said a trader. "But these levels are definitely not shopper-friendly."
What's been happening since the start of the year is proving a real concern for shoppers and the trade. Gold prices have been volatile - first because of the sudden rise in tensions between the US and Iran over the slaying of a top-ranking Iranian general. On January 8, for instance, gold had even shot up to $1,610 an ounce, before settling at around the $1,587 levels. As against that, on January 1, the price was $1,518.
Then came the worries about the global economy and how deeply the China virus will hurt growth this year.
Most gold traders were expecting the price to go past $1,600 only by the second quarter - or even the second-half - of this year. That it came about within the first few days of January has shocked retailers and shoppers.
“All depends then on how soon they are able to adjust to $1,600 or above being the new normal.”
Most gold traders were expecting the price to go past $1,600 only by the second quarter - or even the second-half - of this year. That it came about within the first few days of January has shocked retailers and shoppers.
If a regular buyer of gold spends Dh10,000 annually, he will continue to do so irrespective of what the price isBut as always, jewelry firms are thinking of the bigger picture. “If a regular buyer of gold spends Dh10,000 annually, he will continue to do so irrespective of what the price is,” said Anil Dhanak of Kanz Jewels. “Sure, he or she will take home a few grams less - but the gold shopper will still spend that amount.
Anil Dhanak of Kanz jewels
“All depends then on how soon they are able to adjust to $1,600 or above being the new normal.”
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