Dubai: International gold prices have dropped in early Wednesday (December 1) trading, which has seen the first Dubai Gold Rate for today set at Dh202.50 a gram. If the Dubai rate slips further, this could set off another round of strong shopper activity for the UAE’s gold and jewellery business, especially with the long weekend for the 50th UAE National Day.
Gold is down by nearly $9 to $1,779 an ounce as of 7:15am, which suggests that bullion prices too are feeling the strain of renewed worries about the Omicron version of the COVID-19. As for UAE’s gold shoppers, they are seeing small windows of opportunity open up occasionally – and anything close to or under Dh200 a gram has been a signal to buy. For the better part of November, international prices have been in the $1,800 plus range.
“Even then, right through this month demand for gold in November has been strong, peaking with Diwali sales on November 4 but holding up even after that,” said Shamlal Ahmad at Malabar Gold & Diamonds. “A lot of it was triggered by tourist buying and that’s likely to continue this month too.
“Any further drops will speed up the buying decisions.” (On Diwali day, the Dubai Gold Rate was Dh201.75 and international price at $1,774 an ounce.)
But will it drop more?
Gold’s been that one asset that held its own and outshone itself during the pandemic-infested 2020, hitting an all-time high of $2,000 plus in August that year. So, with the Omicron worries sweeping global markets, will gold as a safe haven see prices move up?
It could be that today’s drop will soon see a correction – but for now, it’s favourable for the shopper. Even as UAE’s residents mark the extended break, many of them should keep an eye on the Dubai Gold Rate announcements – there are four each day – and plan accordingly.
December plans
Quite a decent level of gold shopping has already taken place – “That’s because many residents from India and the Subcontinent were planning to take short breaks in December and bought their usual gold purchases,” said a jewellery retailer. “But many are rescheduling their travel over Omicron.”
That too could be a positive for UAE gold buying. Those who have decided against any immediate travel could pick up more gold and jewellery – and they would be the ones returning to UAE’s many gold stores today.
Jewellery retailers will hope that will last through the rest of this week and longer.