Dubai: Gold prices rose at the end of last week after two consecutive weeks of declines, recording increases of between Dh14 and Dh23.50 per gram across various carats compared with the end of the previous week, according to price indicators announced in the Dubai and Sharjah markets.

Gold prices had fallen by a total of Dh35 per gram over the previous two weeks.

Gold and jewellery traders said that despite the return to price increases, demand for gold jewellery and coins remained strong, supported by Diwali celebrations among customers of Asian nationalities.

The price of 24-carat gold reached Dh490.50 per gram, up Dh23.50 from the end of the previous week, while 22-carat gold rose by Dh21.75 to Dh454.25 per gram.

The price of 21-carat gold increased by Dh21 to Dh435.50 per gram, while 18-carat gold rose by Dh17.75 to Dh373.25. The price of 14-carat gold increased by Dh14 to Dh291.25 per gram.

Gold and jewellery trader Raj Bahi said: “The markets are witnessing a high demand from Asian nationals for gold jewelry and coins as gifts, despite the recent price increases in the yellow metal.”

He added: “The increased demand for purchases comes in light of the celebration of the Festival of Lights, known as Diwali, among some customers of Asian nationalities.”

Gold and jewellery trader Ashwin Raki said: “The recent price increases in gold have not significantly affected the buying activity in the markets, as the current period coincides with the celebration of Diwali by traders of Asian nationalities, during which traders prefer to buy gold gifts for their families.”

He added: “What also supports the continuation of demand in the markets is the tendency of some traders to buy during the current period as a hedge against new price increases in gold, given that the current price limits are still suitable for buying.”

John Paul Alukas, CEO of Joy Alukas Jewellers, said: “Markets are generally witnessing increased demand for gold gifts of all categories during Diwali.”

He added: “The buying activity on that occasion has a positive impact on stimulating demand rates in the markets.”

Gold prices rise by up to Dh23.50 per gram after two weeks of declines