Dubai Gold Prices Stay Below Dh500 A Gram, Just In Time For Diwali Shopping
The 24K variant was trading at Dh496 per gram at the market open on Wednesday, down from Dh497.25 a day before. The other variants, 22K, 21K, 18K, and 14K, were trading at Dh459.25, Dh440.25, Dh377.5, and Dh294.25 per gram, respectively.
Recommended For YouGold prices falling to Dh500 per gram would offer significant relief to UAE jewellery buyers ahead of Diwali, one of the busiest gold-buying seasons of the year. The lower price would make gold jewellery more affordable for shoppers looking to buy necklaces, bangles, earrings and other ornaments for the festival, while allowing those with fixed budgets to purchase heavier pieces.
The decline could also encourage buyers who have postponed purchases amid high prices to return to jewellery stores, potentially boosting retail sales during the festive period.
For Indian expatriates, who traditionally consider gold an auspicious purchase during Diwali, the price drop could provide an added incentive to buy jewellery for themselves and their families.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Globally, spot gold was trading at $4,120 per ounce, down 0.10 per cent, as of 9:10am UAE time. Silver was down 0.74 per cent, trading at $57.4 per ounce.
Gold has been trading in a tight range recently, with elevated oil prices adding pressure, fueling inflation concerns and keeping US Treasury yields elevated, said Vijay Valecha, chief investment officer at Century Financial.
He added that the subsequent rise in the US dollar also adds pressure to the bullion. Despite this, however, Valecha said the precious metal has remained resilient above the $ 4,100 mark so far in October after a more than 6 per cent decline last month.
“One of the primary drivers of gold's strength is investment demand, as shown by surging holdings in global gold ETFs,” he said.“Total known gold ETF holdings, according to Bloomberg, reached a 4-year high of 101.368 million ounces as of today, up 5.37 per cent from the YTD low of 96.2 million ounces on 20th July.”
On the technical said, he explained,“gold prices remain rangebound between the $4070-$4220 levels this month, so a break on either side will be needed before a strong medium-term direction can be established.”
“Silver seems to be rebounding from a horizontal support from the lows of 24th June, 17th July, and 14th October, with 9-period RSI recovering from oversold territory, suggesting a market structure tilted towards the upside in the immediate term,” he added.
ALSO READ- Dubai gold prices drop below Dh500; 24K lose Dh30.5 in one month Dubai gold prices trade above Dh500 after recovering from selling pressure Dubai gold prices rise to Dh503 per gram as global prices recover
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment