Dubai: Gold prices have dropped back from their $1,900 an ounce plus levels – but not by much.
Early on Thursday, gold was trading at $1,895, and seemed to have the momentum to claw back to $1,900 and above. On Wednesday, the price was hovering around $1,905 and briefly shot up to $1,912. Market watchers seem to think that gold still has enough of a momentum to test the $1,940 levels.
The highest point for gold this was on January 4, at $1,943. On Thursday, the Dubai Gold Price was at Dh216 a gram – only Dh5 lower than its year-to-date peak of Dh221.
Not surprisingly, recent increases have ensured UAE shoppers keep well away from any buying. But $1,900 plus levels could see some gold holders in the UAE to sell, making use of the high price and pocket the difference.
The increase in gold prices over the last 12 months
“Summer’s always a time when residents typically have a few choices to make about their spending,” said a jewellery retailer. “As happened last year, travel to the Subcontinent could be severely curtailed during June-September, given the COVID-19 crises there. Only essential travel will happen.
“Even then, gold at $1,900 levels will be an incentive for holders to sell some of it.”