Dubai: Gold prices in local markets recorded significant declines at the end of last week, falling by between Dh13.50 and Dh22.50 per gram across different carats compared with the end of the previous week, according to price indicators announced in Dubai and Sharjah.
Gold and jewellery traders said the yellow metal recorded its biggest weekly decline in several months, helping to revive demand as customers returned to buy jewellery, bullion and coins at lower prices.
Markets usually experience a lull after demand peaks during Diwali celebrations, but the significant price reductions have helped revitalise demand.
The price of 24-carat gold reached Dh468 per gram, down Dh22.50 from the end of the previous week. The price of 22-carat gold fell by Dh20.75 to Dh433.50 per gram, while 21-carat gold declined by Dh20 to Dh415.50.
The price of 18-carat gold fell by Dh17 to Dh356.25 per gram, while 14-carat gold dropped by Dh13.50 to Dh277.75.
Gold and jewellery trader Ashwin Dilip said: “The significant decline in gold prices has contributed to a recovery in demand in the markets, and buyers are returning to purchase gold jewellery, bullion, and coins to take advantage of the lower prices,” adding that the declines were the largest weekly falls in several months.
He said markets usually experience a lull after the peak of demand during Diwali, or the Festival of Lights, but the significant price reductions have helped revive demand.
Gold and jewellery trader Manji Baliker said: “The significant declines recently recorded in the price of the yellow metal have brought buyers back to the markets, as the price drops are an incentive to buy.”
He added that various gold products had seen notable demand, with bullion accounting for the largest share of purchases, particularly as some traders sought to take advantage of current prices to buy for long-term savings.
Gold and jewellery trader Ali Ammar said: “The yellow metal recently recorded its biggest weekly decline in several months, which was reflected positively in the markets, with a recovery in demand for gold jewellery, coins and bullion.”
He added that the declines had brought buyers back to the markets after demand peaked with the start of Diwali celebrations at the beginning of last week. The lower prices also attracted more traders looking to buy bullion for savings purposes.