Dubai: Gold prices fell by between AED 12.25 and AED 20.50 per gram across different carats at the end of last week compared with the previous week, according to price indicators announced in Dubai and Sharjah.
Gold and jewellery retailers said the sharp decline in prices had boosted demand in local markets for gold jewellery and bullion in various denominations and weights. They said the weekly decline was the largest in nearly four months, helping to stimulate purchases.
The price of 24-karat gold reached AED 481.50 per gram, down AED 20.50 from the end of the previous week, while 22-karat gold fell by AED 18.75 to AED 446 per gram.
The price of 21-karat gold dropped by AED 18.25 to AED 427.50 per gram, while 18-karat gold declined by AED 15.50 to AED 366.50. Meanwhile, 14-karat gold fell by AED 12.25 to AED 285.75 per gram.
Gold and jewellery trader Ricky Dhanak said: “The markets have witnessed a remarkable increase in demand for gold bullion and jewellery gifts recently, supported by the significant declines recorded by the yellow metal, which are among the largest weekly drops in about four months.”
He added that demand for gold jewellery and bullion was expected to continue if prices remained close to their current levels.
Gold and jewellery trader Manji Balik said: “The significant decline in gold prices has contributed to stimulating demand in local markets for the purchase of jewellery gifts of various carats, in addition to bullion of various weights.”
He explained that a number of traders had been anticipating a significant fall in gold prices before increasing their purchases of bullion and gold jewellery.
Gold and jewellery trader Raj Bahi said the current surge in demand was among the strongest seen in recent weeks, coinciding with significant declines in the price of the precious metal.
He added that demand was expected to continue in the coming days, with 18-karat gold jewellery accounting for the largest share of purchases, while demand for bullion was concentrated on 20- and 50-gram weights.