UAE: Shoppers put gold, jewellery purchases on hold as prices hit new 8-month high

This comes as the US dollar slipped due to slower US interest rate hike expectations, as well as the reopening of China's economy

File photo
File photo

Waheed Abbas

Published: Mon 9 Jan 2023, 5:11 PM

Last updated: Mon 9 Jan 2023, 8:26 PM

Shoppers in the UAE are temporarily putting gold and jewellery purchases on hold after prices hit an eight-month high on Monday.

The yellow metal prices hit an eight-month high on Monday as the US dollar slipped due to slower US interest rate hike expectations and the reopening of China's economy.

In the UAE, gold and jewellery prices were trading higher in line with the global markets. On Monday afternoon, 24K was trading at Dh226.75 per gram, while 22K, 21K and 18K were trading at Dh210.0, Dh203.25 and Dh174.25 per gram, respectively.

The prices have increased by 2.6 per cent or around Dh5.5 per gram in the first week of this year.

Shamlal Ahamed, managing director, international operations, Malabar Gold and Diamonds, expects customers to hold back on their jewellery purchases, but says this will only be short-term.

“We foresee a slight dip in sales; however, it is expected to be short-lived. This is because it is the peak tourist season in the UAE now, with the country seeing a good tourist influx, who comprise a considerable share of our customers. Also, it is the wedding season, owing to which there will be bridal jewellery purchases as well,” said Ahamed.

John Paul Alukkas, managing director, international operations, Joyalukkas Jewellery, said gold prices are showing an upward movement because the dollar is weakening, along with expectations of interest rate hikes to be slowed down by the US Federal Reserve.

“This rate hike has impacted jewellery sales. Although tourists are not very concerned about the rate hike, residents are adopting a wait-and-buy approach. This might lead to a dip in jewellery sales,” he added.

Anil Dhanak, managing director of Kanz Jewels, said their main customers are tourists, and the primary agenda for them is to visit tourist spots in UAE and shop, irrespective of the gold rate. “The designs available also play an important role,” he added.


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