UAE gold prices fall by up to AED 6.5 as investors snap up bullion
Demand for gold bars gains momentum after latest price drop, with investors favouring medium-weight bullion for savings and resale flexibility
Dubai: Gold prices in the UAE resumed their downward trend at the end of last week, declining between AED4 and AED6.5 per gram across different karats compared with prices recorded a week earlier, according to price indicators in Dubai and Sharjah.
Retailers and gold market officials said the recent decline has boosted demand for gold bullion, with many buyers viewing the current price levels as an attractive entry point amid expectations of higher gold prices in the future.
The price of 24-karat gold fell to AED 496.5 per gram, down AED6.5 from the previous week. 22-karat gold dropped to AED 459.75, a decline of AED 6.25, while 21-karat gold fell by AED 6 to AED 440.75 per gram. The price of 18-karat gold declined by AED 5.25 to AED 377.75, while 14-karat gold fell by AED 4 to AED 294.75 per gram.
Jay Dehkan, Director of Dehkan Gold and Jewellery Trading Company, said many consumers and investors are taking advantage of lower prices by purchasing gold bars for savings and investment purposes.
He noted that expectations of further increases in gold prices have encouraged buyers to enter the market, particularly for bullion products.
According to Dehkan, demand is strongest for gold bars weighing between 20 and 50 grams, as they require a lower investment than larger bars and offer greater flexibility when reselling.
Hossam El-Din Abdel Rahim, Sales Manager at BTC Gold Trading Company, said markets are witnessing clear signs of growing demand for bullion as prices reach what many investors consider attractive levels.
He added that increased confidence in gold as a long-term savings and investment tool has contributed to higher demand, particularly for medium-sized bars that can be sold gradually if prices rise.
Meanwhile, Daily Patten, Sales Manager at Al Fana Gold and Jewellery, said some consumers are purchasing smaller gold bars and incorporating them into jewellery such as necklaces and bracelets, combining investment and personal adornment in a single product.