Dubai gold price drop because of Ramadan

With the arrival month of Ramadan, the Dubai gold market has witnessed a drop in the rates of gold. 24k gold available for Dhs150.50/gram and other qualities also saw a drop in the rates.

Dubai gold price drop because of Ramadan

24-karat gold was retailing in Dubai at Dh150.50 per gram, down from Sunday’s closing price of Dh150.75 per gram. The price for 22K, 21K and 18k also dropped to Dh141.25, Dh134.75 and Dh115.50, respectively.

Spot gold dropped 0.3 per cent to $1,240.80 per ounce by 0646 GMT on Monday. It had earlier reached $1,248.40, according to Reuters.

Karim Merchant, managing director and CEO of Pure Gold Jewellers, said he expects gold price to range between $1,200 and $1,350 for the coming quarter.

“Gold prices are currently dependent on the health of the US economy, as the job numbers have been weaker than expected. [Last week] gold prices increased. This inverse relation is expected to continue in the short and medium term till gold sees a new fundamental change,” Merchant told.

The precious metal showed some strength recently when it flirted with the $1,300 level on speculations that the United States Federal Reserve would forgo with any rate increases. A dramatic sell-off, however, occurred and prices fell by six to 14 per cent. Last May 30, the yellow metal dropped below $1,200 an ounce.

Nevertheless, Nevine Pollini, equity analyst at Union Bancaire Privee (UBP), said they expect gold to remain range-bound. “We stand by our conviction that gold will remain range-bound between $1,100 and $1,350 for the next couple of years,” Pollini said in his latest note.

Georgette Bole, co-ordinator FX and precious metals strategy at ABN Amro, said that as long as prices remain above the 200-day moving averages, the upward trend remains in place.

“For gold prices the 200-day moving average comes in at $1,163 per ounce, for silver at 15.19 and for platinum at 942 per ounce. So any bottom in prices above these levels is an indication that the upward trend remains in place,” Boele said.

Story by