Traders: Continued price decline supports sales of handicrafts

AED 9.5 drop in the price of a gram of gold in two weeks

The price of a gram of 24-carat gold amounted to about 237.5 dirhams. Archival

Gold prices fell by the end of the week between 3.5 and 5.5 dirhams for various karats, compared to their prices at the end of last week, according to the price indices announced in Dubai and Sharjah, to continue the prices of the yellow metal decline for the second week in a row, achieving a total decline of 9.5 dirhams per gram in two weeks.

Officials of outlets for gold and jewelry trade told Emirates Today that the continued decline in prices had positive effects in the markets by stimulating demand for sales of gold jewelry, while recording stimulating declines, pointing out that the markets witnessed remarkable rates of demand from tourists in the markets recently to buy gifts of jewelry.

In turn, the director of the company «Dahkan Jewellery», Jay Dahkan, that «sales are currently witnessing an activity in the demand for gold jewelry, with the demand of dealers to buy gifts of jewelry for requirements related to them, to take advantage of the decline in gold prices finally at stimulating rates», pointing out that «the popularity of tourism activity in the state markets during the recent period, and the demand for the purchase of gifts of jewelry and jewelry, was supportive of the growth of sales markets».

He explained that «the continuation of prices at close rates in the coming days will enhance the recovery of demand in stores, especially as many dealers prefer to buy during that period, after a long period of the continuation of gold prices at high rates, under the pressure of global market variables».

Adita Singh, sales manager at Tanshiq Jewellery, said: "Local markets are responding quickly and positively to price variables or even to the momentum of demand from tourist groups, which account for large shares of jewellery sales."

For his part, the sales manager at the store «Damon Jewellery», Dilip Son, that «many stores are counting on the growth of sales during the current period, to compensate for the slowness witnessed by the markets during periods of large rise during the last period», pointing out that «the continuation of the price decline for two weeks was one of the positive catalyst factors that contributed to attracting many dealers to buy their supplies of gifts of crafts during the recent period».

In addition, the price of a gram of 24-carat gold reached about 237.5 dirhams, a decrease of 5.5 dirhams, compared to its prices at the end of last week. The price of a 22-carat gram was 220 dirhams, down five dirhams. The price of a gram of 21 carats reached 213 dirhams, down 4.75 dirhams. The price of an 18-carat gram reached 182.5 dirhams, a decrease of 3.5 dirhams.