Dubai gold price lowest in 30 days; UAE shoppers wait for it falls to Dh330 levels

The Dubai gold rate is now at its lowest level in 30 days at Dh352 for a gram of 22K as the metal sheds more of the unprecedented price increases seen in recent weeks. This was helped by another sharp fall in global billion rates today, with the local rate now lower by Dh8.25 over the last 24 hours. But shoppers in the UAE are still not convinced this would be the right levels to get back in. Instead, many shoppers are casting their eyes to prices seen in March, when there had been days when it was just under Dh340.

Several times in the last 12 months, gold prices have dropped – and even given the impression that a proper rate correction is on the cards. All that it did was leave shoppers disappointed because within 24-48 hours, prices would rush back to previous high levels – and go further.

“Shoppers have been sitting on the sidelines this week – I don’t think even cutting making charges or as some do offering ‘no making charges’ will bring back demand for now,” said a jewellery retailer. “The sentiment among shoppers is that the Dubai gold rate can drop even further.”

A realistic price for gold would be in the region of $3,000-$3,100 an ounce. Right now, the level is around $3,150. This is why there are shoppers thinking they are better off waiting. Jewellery retailers have always maintained that shoppers will find their own reason to buy gold. And that a rush to buy need not happen at the first sight of a fairly sizable price drop. Weddings and anniversaries and any other occasion dictates whether a shopper wants to buy now or later.