Gold and Jewelry Shoppers in UAE Delay Purchases for the Anticipated Price Drop
UAE consumers interested in purchasing gold and jewellery are exhibiting a trend of delaying their plans due to expectations of a potential drop in prices following recent record highs.
This cautious approach comes amidst a surge in the cost of the precious metal, with industry executives witnessing a steady rise in demand for the more affordable 18K variant, particularly among younger consumers belonging to the Millennial and Gen-Z demographics.
Recent market data indicates that the price of gold soared to unprecedented levels, reaching a record peak of $2,194.99. In the UAE, the pricing for different variants stood at Dh263.75 per gram for 24K, Dh244.25 for 22K, Dh236.25 for 21K, and Dh202.5 for 18K. As Dubai is widely renowned as the "City of Gold," it continues to attract numerous visitors, many of whom flock to the emirate specifically for gold shopping, often in preparation for wedding ceremonies.
Shamlal Ahamed, the managing director for international operations at Malabar Gold & Diamonds, observed that customers are currently holding off on their jewellery purchases, anticipating a potential decline in prices during the upcoming festive season. This period, marked by various celebrations in the Indian Subcontinent, traditionally witnesses heightened demand for gold and jewellery, as the metal holds significant cultural and auspicious value, particularly during specific occasions and festivals.
To address the uncertainty surrounding gold prices, many jewellers in Dubai offer advance or lock-in facilities to customers, allowing them to secure prevailing rates by paying a nominal advance amount. This approach provides buyers with the flexibility to benefit from price fluctuations, ensuring they can purchase jewellery at favorable rates regardless of market conditions.
Despite the price fluctuations, industry experts remain optimistic about the overall demand for gold and jewellery. Ramesh Kalyanaraman, executive director at Kalyan Jewellers, expressed confidence in the sustained momentum of consumer demand, particularly for heavyweight, studded, and traditional bridal jewellery pieces. Additionally, he highlighted an ongoing trend towards increased interest in traditional temple jewellery and polki pieces, especially among younger generations.
