Gold prices drop $220 in 14 days, leading UAE shoppers to return
Price drop coincides with peak tourist season, leading to increased sales at Dubai Gold Souk
Gold Prices Drop $227 in 15 Days, Boosting UAE Shopper Activity
Dubai: Gold prices fell by $227 to $2,561 per ounce in 15 days. By 07:35 am, the asset had lost its luster, falling $50.
In the UAE, local gold prices stood at Dh22,000 at Dh292.75 per gram, well below the all-time high of Dh311 on October 31.
Buyers react to all favorable price movements. Some retailers say they’ve seen more shoppers, residents and tourists in the last 7 days than in October.
Earlier this month it was hard to believe that gold prices would fall so fast. On October 30, the price hit a new high of $2,790 and looked likely to hit a November high of $2,850 and – in an extension – $2,900.
Then Donald Trump won and a lot changed. Gold analysts are still unsure of what level gold will reach in the coming days and weeks. No one is betting on a sudden rise in gold prices.
The $2,450-$2,550 range is being discussed in the coming days.
“There is a buzz around buying gold again – one can clearly feel it at the Dubai Gold Souk,” said a jeweller. “Fortunately, the price drop coincided with the peak of the tourist season in the UAE and we saw a significant increase in the number of buyers. In these 14 days, the mood has changed. I expect the current trend in gold prices to continue..”
