UAE gold prices drop up to Dh18 per gram as demand remains subdued

Dubai: Gold prices fell by between Dh10.5 and Dh18 per gram across different carats at the end of last week compared with the previous week, according to price indicators announced in Dubai and Sharjah. Gold and jewellery retailers said the sharp decline in prices has not been accompanied by a noticeable increase in demand for jewellery or bullion. They attributed the subdued demand to customers returning from summer holidays and prioritising back-to-school expenses. The price of 24-carat gold fell by Dh18 to Dh536.75 per gram, while 22-carat gold dropped by Dh16.75 to Dh497 per gram. Meanwhile, 21-carat gold declined by Dh15.75 to Dh476.75 per gram, 18-carat gold fell by Dh13.75 to Dh408.5 per gram, and 14-carat gold dropped by Dh10.5 to Dh318.75 per gram. Jay Dehkan, Director of Dehkan Gold and Jewellery Trading Company, said the recent decline in gold prices was significant and encouraging, but its impact had not yet been reflected in market activity. Dehkan said demand for gold products, including jewellery and bullion, remained slow as the current period coincides with customers returning from summer holidays, while some are still away. He added that many customers are also focused on back-to-school preparations. Rakesh Dhanak, Director of Rakee Gold and Jewellery Trading Company, said markets are currently witnessing weak demand for gold jewellery and bullion despite the recent price declines. Dhanak said the slowdown is typical for this time of year, with most customers prioritising back-to-school expenses over purchasing gold products, regardless of whether prices are low or high. He added that demand for gold jewellery gifts could improve in the coming days as more customers return from their holidays. Manji Balik, Sales Manager at Reg Gold and Jewellery Trading, said the back-to-school period usually results in slower demand for gold products, even when prices are lower. Balik said many customers are focused on preparing for their children's return to school, including paying fees, purchasing supplies and completing school enrolment requirements.