Dubai: Gold prices extended their decline for a second consecutive week, with prices falling between Dh10.25 and Dh17.5 per gram across different categories compared with the previous week's levels, according to price indicators in Dubai and Sharjah.
The latest declines mean gold prices have fallen by a total of Dh28.5 per gram over the past two weeks.
The price of 24-carat gold dropped to Dh499 per gram, down Dh17.5 from the end of the previous week.
Meanwhile, 22-carat gold fell to Dh462 per gram, a decrease of Dh16.25.
The price of 21-carat gold reached Dh443 per gram, down Dh15.5, while 18-carat gold fell to Dh379.75 per gram, a decline of Dh13.25.
The price of 14-carat gold stood at Dh296.25 per gram, down Dh10.25.
Gold and jewellery retailers said the continued decline in prices has stimulated demand, particularly for bullion and new jewellery purchases.
Mohammed Dheeban, Marketing Manager at Al-Rumaizan Gold and Jewellery Trading Company, said the recent decline in gold prices had positively affected market activity.
"The significant decline in the price of the yellow metal during the recent period has positively impacted demand in the markets, through a noticeable increase in demand for gold bullion of various types, categories and weights, in addition to the increased demand for buying new gold jewellery gifts," he said.
Dheeban added that stronger demand had increased competition among retailers, prompting stores to introduce promotions, incentives and new jewellery designs to attract customers.
Ahmed Aneizan, Deputy CEO of Salem Al Shuaibi Jewellery Company, said current price levels were encouraging purchases.
"The current gold price levels are encouraging for buying, whether for bullion or new jewellery gifts of various categories, as evidenced by the remarkable activity in the markets recently, with increased demand from customers to buy bullion and jewellery," he said.
He added that discounts on making charges and other promotional offers, together with lower gold prices, had contributed to stimulating demand.
Manger Balik, Sales Manager at Reg Gold and Jewellery Trading, said the continued decline in prices for a second straight week had attracted investors and traders interested in bullion purchases.
"The continued decline in the price of the yellow metal, for the second week in a row and by significant amounts, has contributed to an increase in demand for bullion and attracted traders in this sector, and has also contributed to stimulating demand for gold jewellery gifts," he said.