Shoppers are waiting to see if gold prices in the UAE will drop further after the US Fed’s comments dampened market sentiment.
Gold prices in the UAE have taken a notable dip, making it an opportune time for shoppers to explore buying gold or jewelry. Since December 11, global gold prices have dropped by over $100 per ounce. A sharp decline of $35 in just the last few hours, bringing the price to $2,610 an ounce. At one point, gold even slipped below $2,600, marking its lowest levels since mid-November.
As a result, gold price in the UAE today stands at Dh292.5 per gram, down by Dh1 from yesterday. This is the lowest rate seen in the past 10 days. A sparking interest among buyers looking to take advantage of the current pricing trends.
Could gold prices in the UAE drop further, possibly nearing the $2,550 mark? Both shoppers and retailers are keeping a close watch, hoping that this week’s price dip continues and sparks a ‘mini gold rush’ as 2024 draws to a close.
“A price around Dh290 per gram would likely encourage higher spending on gold by tourists,” shared a local jewellery retailer. “However, resident shoppers might hold off for now, waiting to see if prices drop even further.”
For many residents, the tipping point for significant gold purchases could come if the price of 22K gold falls to Dh280 per gram.
Based on what retailers are saying, it’s been a slow start to gold sales as part of the DSF 2024 promotions. There are the usual raffles going on throughout the entire DSF campaign. Jewellers are also giving additional incentives through cuts to making charges and their own cash back or gold coin schemes.
Plenty of Movement in Gold Prices in the UAE After Fed Decision Disappoints
Since the US Federal Reserve announced its third 0.25% interest rate cut late last evening (UAE time). Global stock markets have seen a widespread negative reaction. Interestingly, the market downturn wasn’t triggered by the rate cut itself, which had been widely anticipated. The Fed’s indication that it may implement fewer cuts in 2025. This development has also raised questions about its potential impact on the gold price in the UAE.