Dubai: Gold prices declined sharply at the end of last week, falling by between Dh6.75 and Dh11 per gram across various gold categories compared with the previous week, according to price indicators published in Dubai and Sharjah.
Retailers said the price drop, which followed a period of strong gains, has sparked renewed demand for gold bars of different weights and denominations, particularly among investors and savers.
Rakesh Dhanak, Director of Riki Gold and Jewellery Trading, said the return of lower prices had positively affected the market by encouraging customers to purchase gold bullion.
“The immediate rush to buy bullion comes amid expectations that gold prices could rise significantly in the coming months,” he said.
Deli Son, Sales Manager at Daimer Gold and Jewellery Trading, said the market is witnessing a noticeable improvement in gold demand as a result of the recent decline in prices.
He noted that gold bars are currently attracting stronger demand than jewellery, as many buyers view bullion as an investment and savings vehicle. Jewellery purchases, meanwhile, remain more closely linked to occasions, seasonal demand and price fluctuations.
Raj Bahi, Sales Manager at Masho Gold and Jewellery Trading, said many customers are taking advantage of the lower prices to buy gold bars for investment and savings purposes.
He added that jewellery purchases continue to be driven mainly by gifting needs and special occasions.
According to Bahi, demand in the jewellery segment is currently concentrated on 18-carat gold products, which are proving more popular than other gold categories.
Latest gold prices
At the end of last week:
24-carat gold fell to Dh516.50 per gram, down Dh11
22-carat gold fell to Dh478.25 per gram, down Dh10.25
21-carat gold fell to Dh458.50 per gram, down Dh10
18-carat gold fell to Dh393 per gram, down Dh8.50
14-carat gold fell to Dh306.50 per gram, down Dh6.75
The decline has strengthened market sentiment, particularly among bullion buyers who are seeking to capitalise on lower prices amid expectations of further gains in gold over the longer term.
