Gold prices in Dubai dropped sharply in the afternoon of May 8th and presented an unexpected gift to buyers and the investors in the emirate. The Dubai Jewellery Group has reported that gold rates for all popular variants, from 24, 22 to 18-carat have gone down by up to Dh 9 per gram, which is a serious fall from the prices recorded towards the end of trading, Wednesday, May 7.
Other gold variants also saw price drops:
24-carat gold: Dh 400.25 per gram, down from Dh 409.00
22-carat gold: Dh 370.50 per gram, down from Dh 378.50
18-carat gold: Dh 304.50 per gram, down from Dh 311.25
This sharp drop occurs at the same time as a 1.45 percent drop in the spot gold price on the global market which stood at USD 3,336.86 per ounce. Analysts attribute this decline to a mix of influences such as cautious posturing of US Federal Reserve Chair Jerome Powell and percolatory relations between the United States and China whose outcomes directly trade-off on global commodities as well as investment sentiments.
In one of the interesting developments, Dubai residents can now get coins of 24 carats gold delivered to their doorstep within an hour, as a new initiative of the super app Careem. The introduction of a feature which allows users to buy as much as Dh 10,000 worth of physical gold in one single transaction was recently made available to millions of Indian expats in the UAE by Careem Technologies, a spin off from Uber Technologies’ Middle Eastern operations.
Global Influence, Local Impact
Dubai’s gold market is closely related to world trends. The local rate cuts came immediately once the prices dipped around the world. Although some may consider this to be a falling back in the market, it creates a buying window for residents, tourists and investors to buy physical gold.
Even though the price has crashed, gold is a safe-haven asset (which is especially attractive in the face of the geopolitical uncertainty). This continues to fuel long term demand for gold as a safe haven due to the ever-rising tensions in Eastern Europe, the Middle East, and North Asia.
The gold is purchased and certified by Tanishq, the crown brand jewellery of India’s largest retailer Titan Company Limited. Globally, spot gold had been trading at USD 3,336.86 per ounce, down by 1.45 percent. The dip takes place after considering cautious remarks by US Federal Reserve Chair Jerome Powell following the most recent Fed meeting, and indications of trade tensions abating between the United States (US) and China.
Even with price reduction, gold is still demanded as a safe haven asset during the continuing political tension in Eastern Europe, the Middle East, and South Asia. Dubai is still maintaining its image as the world’s centre of gold trade. The dramatic drop in the prices of 24, 22, and 18-carat gold is warmly welcomed by all potential buyers. Residents can now invest smarter and faster with added conveniences such as one-hour delivery of gold coin and competitive pricing.