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Gold shops in Dubai and Abu Dhabi have been witnessed a rush of buyers in the morning hours as news of the fall in gold prices spread across the country.

On Thursday morning, the rate of 22-carat gold dipped to Dh82.50 a gramme and Dh87.50 a gramme for 24 carat.

In mid-September, when the gold prices slid to Dh84.50 a gram, gold lovers and investors made heavy purchases and within a few days gold shopkeepers in Dubai and Abu Dhabi reported almost 300 per cent increase in sales. However, the gold prices again jumped up to Dh100-Dh102 for a gram.

Some gold retailers in Dubai and Abu Dhabi said that the troubled situation in the Gulf region, financial crisis worldwide, sliding of dollar rates and an all-time low crude oil prices, might have led to fluctuation in gold prices.

Gold rates depend on the fluctuation of dollar value - if the dollar appreciates, the gold prices go up and if it depreciates the gold prices, too, fall.

According to the General Manager of Dubai Gold and Jewellery Group, Swapna Nair, “The gold prices are fixed by London’s gold jewellery group and its price fluctuation depends on the dollar, oil and demand and supply in the market.

“We cannot predetermine that its prices would go down further. But we expect that its prices in the future would go up in the long term.”

Cushar Patni, Manager in Ajanta Jewellers in the capital, said, “We follow the international gold rates and whatever is quoted to us we follow that. From Wednesday evening, our sale has gone up by 250 per cent.”

A shopkeeper in Dubai’s Gold Souq, who preferred not to be named, said, “As gold prices fell on Wednesday evening, the sales have increased dramatically.”

anwar@khaleejtimes.com

• UAE