Dubai: Gold prices in the UAE declined at the end of last week, falling by between 75 fils and AED1.25 per gram across various carats compared with prices recorded at the end of the previous week, according to price indicators announced in Dubai and Sharjah.The decline helped sustain demand for both gold jewellery and bullion, with retailers reporting strong purchasing activity as consumers took advantage of lower prices.The price of 24-karat gold fell by AED1.25 to AED487.25 per gram, while 22-karat gold declined by AED1 to AED451.25 per gram.The price of 21-karat gold decreased by AED1.25 to AED432.50 per gram, while 18-karat gold dropped by AED1 to AED370.75 per gram. Meanwhile, 14-karat gold fell by 75 fils to AED289.25 per gram.Ricky Dahnak, Director of Ricky Gold and Jewellery Trading, said the recent decline in prices had encouraged purchases of both jewellery and bullion."The markets are witnessing demand from traders to buy bullion and jewellery, especially given the decline in gold prices and their reaching levels that encourage buying," he said.Dahnak added that demand for jewellery remains concentrated in 18-karat products, while small and medium-sized gold bars weighing between 10 and 30 grams continue to attract the highest demand in the bullion segment.Dale Son, Sales Manager at Daim Gold and Jewellery Trading Company, said lower gold prices had further supported demand, particularly as retailers compete through promotions and reductions in making charges."The decline in gold prices and their further drop support the demand for jewellery and bullion, especially with many stores competing to offer deals that include discounts on manufacturing fees, whether advertised or through negotiation and providing sales facilities," he said.Son noted that growing confidence in gold as a savings and wealth-preservation tool has encouraged many consumers to purchase bullion and jewellery for long-term holding and resale when liquidity is required.Mang Baliker, Sales Manager at Reg Gold and Jewellery Trading, said many customers are currently favouring gold bars because prices remain lower than in previous periods.He added that demand for both jewellery and investment bars is expected to remain strong as long as prices stay at relatively attractive levels and do not experience sharp increases that could prompt buyers to delay purchasing decisions.
