Dubai: Gold prices extended their decline for a second consecutive week, with the price of a gram falling by between AED1.75 and AED3 across different carats compared with the previous week, according to price indicators in the Dubai and Sharjah markets.
The total decline in gold prices over the past two weeks has reached AED21 per gram, encouraging some investors to return to the market, particularly buyers of bullion bars.
Retailers said falling prices have boosted demand for small and medium-sized bars, although overall demand remains subdued as some buyers continue to anticipate further price declines. The back-to-school period and summer travel season have also weighed on consumer activity.
Rikesh Dhanak, Director of Riki Gold and Jewellery Trading, said the continued drop in prices had stimulated demand for small and medium-weight bullion bars.
“Although demand has returned to the market with the decline in prices, it remains limited, as many traders are waiting for further price reductions in the coming period,” he said.
He added that demand for gold jewellery remains weak but could improve if prices continue to fall.
Raj Bahi, Sales Manager at Mashu Gold and Jewellery Trading, said periods of significant price declines typically lead to stronger demand for both bullion and jewellery.
However, he noted that current demand for bullion remains limited as some investors are delaying purchases in anticipation of further price falls linked to developments in international markets.
He also pointed to the back-to-school season and summer holidays as factors affecting demand, with some customers still travelling abroad.
Dale Ashon, Sales Manager at Daimo Gold and Jewellery Trading, said the market is currently seeing demand for medium and small-weight bars, supported by the recent decline in prices.
He agreed that many traders are still postponing purchases because they expect prices to fall further.
Gold prices
At the end of the week, the price of 24-carat gold stood at AED533.75 per gram, down AED3 from the previous week.
The price of 22-carat gold fell AED2.75 to AED494.25 per gram, while 21-carat gold dropped AED2.75 to AED474 per gram.
Meanwhile, 18-carat gold declined AED2.25 to AED406.25 per gram, and 14-carat gold fell AED1.75 to AED317 per gram.
