High gold prices stimulate demand for coins and bullion

Gold prices continued to rise for the second week in a row, recording – at the end of last week – an increase between 2.5 and 3.75 dirhams per gram of various karats, compared to their prices at the end of the previous week, according to the price indexes announced in Dubai and Sharjah, bringing the total increases within two weeks to 12.25 dirhams per gram. .

Officials of gold and jewelry trading outlets told Emirates Today that the continued price increases of the yellow metal contributed to shifting the direction of demand for dealers to buy gold coins that witnessed activity, compared to the demand for jewelry, with some dealers focusing on buying currencies that are suitable for gold and jewellery. Gifts for decorative and savings purposes, especially with expectations of rising prices in the coming period.

The price of a gram of 24-carat gold reached 332.75 dirhams, an increase of 3.75 dirhams, compared to its prices at the end of the previous week, while the price of a gram of 22-carat gold reached 308.25 dirhams, an increase of three dirhams. The price of a 21-carat gram reached 298.25 dirhams, an increase of 2.75 dirhams, and the price of an 18-carat gram reached 255.75 dirhams, an increase of 2.5 dirhams.

The director of Dehkan Gold and Jewelry Trading Company, Jay Dehkan, said, “The continued rise in gold prices and reaching high rates has been reflected in the change in demand and consumption rates in the markets,” pointing out that “the markets have witnessed a growth in demand for sales of gold coins that are suitable as gifts.” They can be used for decorative purposes by combining them with chains and bracelets. At the same time, they can be treated as savings tools and resold easier and better, compared to gold jewelry that includes manufacturing fees at higher rates.”

He added, “The markets witnessed demand rates for bullion sales, but at lower rates, with a number of traders awaiting price indicators in light of the rapid changes in the prices of the yellow metal, in light of the geopolitical fluctuations in international markets.”

The manager of the “Mashu Jewelery” store, Raj Bahi, pointed out that “the markets have witnessed a growth in demand for gold coin products, with the significant increases recorded in gold prices, in addition to some dealers’ tendency to buy bullion products with expectations of a new rise in prices,” pointing out “Sales of handicrafts have witnessed a slowdown in demand for them.”

Dilip Son, the sales manager at the Daimo Jewelery store, explained that “sales in the markets witnessed a shift from dealers to buying currency products, with the decline in demand for sales of gold jewelry, in light of the recent rise in the prices of the yellow metal,” noting that “the price increases contributed In a state of slow demand for sales of new gold jewelry, with some dealers trying to postpone purchases, hoping that the yellow metal will record decline rates that encourage purchasing.