Gold price in Dubai dropped over the past week as the price of 22k to 156 dirhams per gram decrease of 15 dirhams for price last year, shed the yellow metal for about 30 percent of its value since the highs gold ever on September 6, 2011,when it rose to $ 1,923 per ounce.
Said Joy Alukkas, Chairman of Joy Alukkas Group that dip in gold prices contributed to increase the sales during the past few weeks more than 70 per cent compared to the same period of 2012. During celebrations Akshaya Tritiya and most of the jewelry outlets saw an upswing of 15 per cent.
“Gold price can not be predicted exactly., But this is a good time to buy,” said Joy Alukkas.
Said Shamlal Ahmad, Managing Director International Operations, Malabar Gold that UAE Gold sales jump up to 100 percent of the gold sales in the UAE and Dubai in particular And Dubai Gold Souk witnessing abnormal activity of the volume of sales since the lower in world gold prices in mid-April.
We expect to continue increase Dubai Gold for a considerable period, especially with the expectations not high gold prices in the near said Ahmed Hilal, director of Space Crescent Jewellery in Dubai.
According to World Gold Council , gold demand fell 13 per cent in the first quarter as a result of the liquidation of a large-scale in the exchange traded fund while the demand for gold in jewelry rose 12 per cent.
“The demand for jewelry in markets across the Middle East has seen a rebound in the first quarter”
Recorded UAE gold sales of $ 1.14 billion in the first quarter of 2013, an increase of eight per cent in terms of value during the same quarter in 2012, gold sales in the UAE rose to $ 3.36 billion, which represents about one-third of the $ 10.1 billion in gold sales in the entire Middle East region in 2012, according to the World gold Council report.
Said Steve Land, portfolio manager and research analyst at Franklin Equity Group that the main drivers of the gold price crash seems to be a sell-off in exchange-traded funds backed by gold and gold investments.
Land said that there is a significant lower in the amount of gold in the global investment funds traded since February of this year, which effectively moved a large amount of gold out of the investment market. ”
Land added that other factors behind the collapse of gold prices is the fear of the debt problem of Cyprus and the strength of the U.S. dollar, and improving equity markets / global economy and limited signs of inflation at the global level.
“Although gold prices are nearly impossible to forecast, we believe there are still compelling reasons for having exposure to gold through related equities in the current environment. Gold acts as a store of value in times of uncertainty and may act as a potential hedge against a weak US dollar or rising inflation,” said Land.
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