Dubai: It might be time for shoppers in the UAE to take a closer look at gold or jewellery after the price of gold drop by over $100 per ounce since December 11. And just in the last few hours, gold has been down by $35 to $2,610 an ounce.
For some time, gold prices had even dropped below $2,600 in the last few hours. But the current $2,610 represents the lowest since mid-November.
The UAE gold rate for today has been set at Dh292.5, lower by Dh1. This is the lowest rate in the last 10 days. (For regular updates on gold and currency movements, check out this link.)
The UAE gold rate for today has been set at Dh292.5.
A price of around Dh280 a gram for 22K will be the trigger for UAE shoppers to get busy buying gold in the last 10 days of 2024. Let’s hope it happens
Can gold drop further, towards $2,550 level? Shoppers and retailers are hoping this week’s softening will continue, thus setting off a ‘mini gold rush’ in the final days of 2024. “The Dh290 a gram levels will prompt heavier spending on gold by tourists, but as far as resident shoppers are concerned, they might want to see gold down by some more,” said a jewellery retailer.
“The trigger for a possible heavier buy-in among resident shoppers could be if prices for a gram of 22K slips to Dh280.”
UAE shoppers, for the most part, want to see stability in gold prices more than whether prices are above or below a certain range
Based on what retailers are saying, it’s been a slow start to gold sales as part of the DSF 2024 promotions. There are the usual raffles going on throughout the entire DSF campaign, and jewellers are also giving additional incentives through cuts to making charges and their own cash back or gold coin schemes.
According to Tawhid Abdullah, Chairman of Dubai Jewellery Group and CEO of Jawhara, “In 2024, gold shoppers got used to levels of $2,200 to nearly $2,800 for the first time. All they need to see is for some price stability, at least that’s what UAE shoppers will want to see. For the majority, it’s more about price stability than whether gold prices are above or below what they see as the right price.”
Plenty happening after Fed disappoints
Since the US Federal Reserve announced a third interest rate cut by 0.25% late last evening UAE time, global stock markets reacted negatively across the board. The market reaction wasn’t to the actual interest rate cut, which was expected, but the fact that the Fed is considering fewer cuts in 2025.
“The market reaction was immediate,” said Quasar Elizundia, an analyst at Pepperstone. “The dollar strengthened significantly following the announcement, while US Treasury yields also rose. These movements reflect market surprise at a less accommodative tone than expected.”
Will gold price fall to November 15 levels?
On November 15, gold dropped to the lowest point since October, at $2,568. “The market saw immediate demand among shoppers, but the unfortunate part was that it was short-lived,” said a retailer. “Within days, gold was back to well over $2,600 and had then gone past $2,700.
“Everyone’s hoping this time, there will be no immediate bounce back for gold.”
United Arab Emirates Dirham Exchange Rate