Price of gold in UAE sinks to lowest level in 17 years
Price of gold in UAE sinks to lowest level in 17 years for The Daily Coin
TDC Note – The Dubai Metals Exchange will likely be tied to the BRICS Gold Markets, in Beijing and Moscow, at some point in the future. It would only make sense to ensure that gold and silver trade at the same rate throughout the Eastern world.
In news that will be welcomed by those in search of cut-price jewelry, the UAE 24-karat gold price has sunk to its lowest levels in over 17 years, first dropping to Dh146.25 before falling again to Dh145.50 per gram early afternoon Monday. You can check the current gold rates for Dubai here: https://www.business24-7.ae/gold-rates-in-dubai/
This is the lowest level in the last 3 months and is thought to have been precipitated by unrest in Turkey pushing investors away from commodities like gold to perceived safehouses like the US dollar. The US authorities have also increased tariffs on Turkish aluminium and steel, sending even more investors scurrying to safety. Those in the know comment that a rumoured interest rate hike by the US Federal Reserve will not help gold to regain lost ground.
In terms of jewelry-buying, traditional demand from Indian and Middle Eastern customers isn’t proving as strong as hoped. It is thought that high local prices, seasonal weather disruptions and new VAT in some markets have contributed to the stagnation.
According to Vijay Valecha of Century Financial, “Gold seems to be losing its shine as rising interest rates and a strong bull market in global equities means that there are better avenues for investment.”
Valecha continued on a more positive note, however, highlighting that religious festivals like Eid and Diwali, as well as Christmas and Chinese New Year, mean that the coming months are traditionally better for gold sales and, as a result, not all is lost for the precious metal between now and the year end.