Gold Price Reduced – Is It A Good Time To Buy?

- Advertisement -

Gold prices are coming back to Earth – it had recently dropped $25 dollars in the global commodity markets to be in the $1,555 plus an ounce range. That’s quite a climbdown after it briefly crossed $1,700 on Monday (March 9), for the first time since 2012.

Dubai Gold Rate is now at Dh179.75 for 22K, dropping a dirham from Thursday’s retail price. Over the last two days, the Dubai rate is down by Dh10 a gram, and in the past this had been enough to set off a buying spree. But will it be enough to bring shoppers back this time?

READ  Iran existential threat to UAE, Saudi, says top US lawmaker

“Yes, such a steep drop in local gold prices could support buying activity,” said Cyriac Varghese, General Manager at Sky Jewellery. “But the coronavirus fear factor will also have a sizeable impact. It’s still uncertain times.”

Gold prices are engaged in a stiff fight with the falling Indian rupee – Asia’s weakest performing currency at the moment – and others. Is it a good time to pick up a few grams of gold rather than use their currency’s weakness to remit back home?

The rupee is at 20.22-20.30 to the dirham and could drop further through the rest of the day.

READ  UAE: Private Schools Not Allowed to Hike Tuition Fees

“Right now, the market can only rely on UAE shoppers – the coronavirus has affected travel plans and it will take some time before tourist buying regains lost ground,” said a jewellery retailer. “If the local gold rate drops below Dh180 – it should – and remains at these levels, we are expecting some demand for gold coins (which do not carry VAT).

“But it will be a stiff fight given how the rupee is dropping.”

 

- Advertisement -

1
Leave a Reply

avatar
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
1 Comment authors
Ganga Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Ganga
Guest
Ganga

Is it right time buy gold