Rising gold prices in the UAE have impacted the sales of gold ornaments especially among the buyers from the Asian community who are showing an inclination towards light-weight gold ornaments.
This has led to manufacturers producing more lightweight gold jewelry as its demand has risen sharply. According to industry executives, precious metal jewelry below 15 grams is currently in demand as shoppers are not stretching their budgets to buy gold as of now.
Maha Al Sibai, founder, Maha Al Sibai Jewellery, said, “We are witnessing a surge in the gold rate at the moment; that is the reason behind the rise in the price of the ornaments. But the client doesn’t understand this and doesn’t want to pay higher rates for the ornaments. This is the reason why the jewellery manufacturers are using techniques to make lightweight ornaments that fit into the budget of the clients.”
Gold prices continued to climb on Friday, as prices surged to a record high of AED323.25 per gram at the opening of the markets.
According to Dubai Jewellery Group data, the 24K variant of the yellow metal rose AED1 per gram on Friday morning to AED323.25 per gram. Meanwhile, 22K, 21K, and 18K were selling higher at AED299.5, AED289.75, and AED248.5 per gram, respectively.
Gold prices have been rallying on expectations of further interest rate cuts, geopolitical tensions in the Middle East and revival of funds inflows into exchange-traded funds.
