Dubai’s historic Dubai Souq witnessed a rise in gold sales as prices declined.
One supplier stated that business had increased over 30% during a regular month due to the price fall, Eid Al Adha holidays as well as pent-up demand caused by the COVID-19 pandemic.
Other retailers stated that they had witnessed a rise in gold than usual in the last few days.
One gram of 22-carat gold was priced at Dh198 ($53) in Dubai on Friday, July 8, with the cost now dropping to less than Dh200 for the first time in 2022.
Dubai Gold Souq shopper said, “It’s risky to wait. The best time to purchase is now.”
The director of Nimisha Jewellery in Dubai, Satyen Choksi, said that the surge has been going on for a while now and the market is up by 30% during a regular month.
Choksi, whose wholesale business offers precious metals to shops in Deira Gold Souq, stated huge sales were also recorded at the time of Eid Al Fitr.
“Every time the cost comes down, people grab this opportunity,” he said.
People are facing the July heat at the Deira market to take benefit of such deals.
The director of Dhakan Jewellers, Vishal Dhakan, stated that the dropping price makes the customers more interested in buying gold.
Dhakan, who has 14 shops of his business in Dubai, with the first one opening in 1978, stated that custom had been quick this year, with business also grown by the partnership deal signed in February between India and the UAE.
This resulted in the scrapping of a 5% import duty on jewellery exported to the United Arab Emirates from India. In comparison, the subcontinent has consented to a 1% tax concession on gold imports from the UAE.
The most famous pieces at the souq were generally 22-carat bangles and necklaces. Many visitors won’t return till the autumn, stated traders.