Dubai gold touches red-hot Dh200/gram
Prices, impact of virus expected to prompt more selling on local market
Business Editor
The official gold rate in Dubai has touched Dh200 a gram for the first time in nine years. Anyone buying gold now — few are — will also have to fork out an additional 5 per cent on that.
“Gold’s turning super-hot — for consumers and retailers,” said a trader. “At these levels, it’s only a sellers’ market. Anyone who has gold and needs instant cash will be selling.
“There’s no shopper out there willing to buy.”
This comes after gold prices shot up to $1,760 (Dh6,464.4) an ounce levels in early Monday trade on the global metals market.
If gold maintains this trajectory and pushes closer to $1,780-$1,790 levels in the next few days, it could set off another round of selling activity by UAE residents. Earlier this month, many had sold their gold for cash, especially those expat Indians who wanted funds to fly back to their home country on repatriation flights.
Some jewellery retailers had
been offering price lock-in programmes since early March, during which period local prices for 22K were averaging Dh172 a gram. It meant if prices shot up, they would still be paying the lower price. (They had to pay 10 per cent for the booking.)
“Initially, the booking was to close on April 26 (which was this year’s ‘Akshaya Trithiya’ occasion), but we extended it to until May 15,” said Abdulsalam K.P., Executive Director at Malabar Gold & Diamonds. “Many of these buyers could consider selling in the coming days if current levels are maintained or go higher.
Retail sources say they have no issues about handing out cash for these transactions.