Will UAE witness a gold exchange boom next week despite high prices?
With gold prices in the UAE reaching unprecedented levels, the jewellery sector is adapting by offering discounts on making charges to attract buyers.
FollowIn the coming days, the UAE could witness an unprecedented surge in gold exchanges, with prices hovering around $2,900 per ounce. While still below the record high of $2,940 recorded on February 10, gold remains a key focus for investors and traders.
The upcoming week will see the opening of three major events—Gulfood, the Dubai International Boat Show, and the IDEX defence industry exhibition in Abu Dhabi. Experts in the UAE’s jewellery market anticipate that many attendees at these trade shows may take the opportunity to trade in their old gold for new purchases, potentially driving increased activity in the gold exchange sector.
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Gold prices in the UAE have seen an unprecedented rise, increasing by nearly Dh30 per gram since January 1. Such a sharp price hike has never been recorded before.
While most UAE residents are holding off on new gold purchases, hoping for a price drop, many had already participated in gold exchange programmes over the past 7-9 months as prices steadily climbed.
However, for visitors to the UAE, exchanging or selling gold purchased a year or more ago remains an attractive option, as they stand to make significant gains from the current price surge.
The UAE’s gold and diamond jewellery market continues to play a key role amid rising gold prices. To attract buyers during this period of elevated rates, Kalyan Jewellers is offering a 50% discount on making charges for all gold products until February 23, providing added value to customers.
Other major jewellery retailers are following a similar strategy—minimizing making charges to encourage shoppers to make purchases despite the high gold rates. By offering these discounts, jewellers aim to convince buyers that now is still a good time to invest in gold.
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