'Dh1,200 profit in 24 hours': UAE residents make quick gains as gold recovers after record low

One Dubai resident who bought gold on Wednesday — when prices hit a rare low during a fluctuating market for the yellow metal in the aftermath of US President Donald Trump’s tariff yo-yo — made a profit of over Dh1,200 in just 24 hours. The single mother of two, who requested not to be named, invests in gold regularly and bought ten 10gram gold coins. She explained that she had been tracking the prices for almost two weeks. 

“I am not much of an investor, but I have been buying gold coins every month for the last year and a half,” she said. “In March, I got a bonus which I kept aside for buying gold coins, but the prices had hit a record high. So, I adopted a wait and watch policy. On Wednesday morning, when I logged into the site, I saw that the prices were lower than I had seen in a while. I immediately swooped in and bought ten gold coins online from a well-known gold retailer. Today [Thursday], when I checked the price, I saw that I had made over Dh1,200 profit.”

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Meanwhile, some UAE gold retailers witnessed a surge in buyers on Wednesday. “We saw a notable increase in customer activity when gold prices experienced a slight dip,” said John Paul Alukkas, Managing Director of Joyalukkas International Operations. “Many took advantage of our price hold offers, locking in their purchases at the lower rate, especially with the upcoming Akshaya Tritiya festival in mind. People recognise that gold remains a timeless and secure investment. We witnessed encouraging participation from both seasoned buyers and first-time customers.”

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On Thursday, gold prices shot up by over Dh10 per gram. The Dubai Jewellery Group website showed 24K opening at Dh376.5 per gram — an increase of Dh13.5, compared to the Dh363 price on Wednesday opening. Similar increases were noticed across 22K and 18K gold as well.

Cautious buying

However, others noted that they did not see a “significant” difference in buyer behaviour. “Sales did increase when prices dropped; however, the drop did not last long enough for there to be a significant shift in buying behaviour,” said Amina Mohammed Ali, Managing Director of Zaiba Jewellers.

Her comments were supported by Nishin Thaslim, chairman of Morickap Group of Companies. “It appears that many people are indeed still waiting for a price reduction to buy gold,” he said.

Just days after announcing steep ‘reciprocal’ tariffs on all countries across the world, Trump did a turn around and declared a 90-day pause on rolling out the decision. However, he hit China harder with a massive 125 per cent duty. The move caused mayhem on global markets, causing massive fluctuations. 

Terence Hove, Senior Financial Market Strategist at Exness said that the response to the dip in gold prices was “mixed” due to various factors. “Some investors sold gold to lock in profits or cover losses from other assets due to the risk of margin calls from market volatility, but there was also significant buying,” he said. “Many market participants saw the dip as a chance to buy gold as a safe-haven asset due to ongoing market risks, such as the US-China trade tensions. Central banks could also continue increasing their gold reserves, supporting the market.”

Market volatility

Terrence added that it was important for investors to remain vigilant. “Diversification and risk management are important factors to keep in mind and should be used to shield against exposure to volatility,” he said. “Given the current uncertainty, investors should remain cautious and attentive to the new developments in trade policy.”

However, despite the volatility, Amina said her advice was for people to buy gold. “Gold prices will fluctuate because of the uncertainty over the next few months,” she said. “However, in the long term, gold has always appreciated in value. With prices set to increase further, it’s always advisable to buy today.”

Nishin added that the ongoing geopolitical tensions have created a climate of uncertainty. “In such times, gold is often seen as a safe-haven asset that can preserve wealth when other investments become volatile,” he said. “Also, the tradition of buying gold on Akshaya Tritiya has been passed down through generations. So I think it’s definitely a good time to buy gold.”

Nasreen Abdulla

nasreen@khaleejtimes.com

Nasreen Abdulla is a Special Correspondent covering food, tech and human interest stories. When not challenged by deadlines, you’ll find her pulling off submissions on the jiu jitsu mats.