Dubai’s gold market witnessed a significant uptick today, with Gold Prices climbing nearly AED 7 per gram, surprising shoppers who had anticipated a continued decline. The rate for 22K gold rose to AED 374.75 per gram, while 24K gold surpassed the AED 400 mark, reaching AED 404.65. However, by mid-morning, prices adjusted slightly, with 22K gold trading at AED 371 per gram.
Market Volatility and Shopper Sentiment
The recent fluctuations have left both consumers and retailers navigating a volatile market. Many had hoped for prices to dip to around AED 360 for 22K gold, especially with global markets showing positive trends and reduced concerns over U.S. tariffs. An FX analyst noted, “These days, the way gold is moving, anything can change in 24 hours.”
Akshaya Tritiya: A Key Buying Period
The period leading up to Akshaya Tritiya on April 30 is traditionally significant for gold purchases, particularly among the Indian community in the UAE. This festival, along with Dhanteras and Diwali, marks one of the highest sales phases for gold in the region. Retailers remain hopeful that prices may soften, encouraging festive buying.
Understanding the Price Movements
While the recent surge is notable, experts advise against expecting a drastic crash in gold prices. Anil Dhanak, Managing Director at Kanz Jewels, stated, “If in any of these days, gold closes below $3,280 an ounce, that’s a crash. Until then, it’s all more of a price correction.” Earlier today, bullion prices briefly dipped to around $3,260 an ounce before rebounding to trade at $3,336.
Retailers’ Perspective
Despite the price volatility, retailers are optimistic. They believe that the cultural significance of Akshaya Tritiya will drive consumers to make purchases, even if prices remain elevated. The sentiment is that gold buying during this auspicious time is more about tradition and belief than market rates.
Looking Ahead
As the market continues to fluctuate, shoppers are advised to stay informed and consult with trusted jewellers. With Akshaya Tritiya approaching, many are watching the market closely, hoping for favorable buying conditions.
For the latest updates on gold prices and market trends, visit Emirates 24/7 and GoodReturns UAE.
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