Dubai: The price of gold in the UAE went down a lot by over Dh33 in one day. This is news for people who want to buy gold before Eid al-Fitr.
The price of 24-karat gold went from Dh584.5 per gram on Thursday morning to Dh554.25 in the evening. That is a drop in just a few hours. A days ago the price was around Dh609 per gram so the price has really come down.
Other kinds of gold also got cheaper. The price of 22K gold is now Dh513.25 21K gold is Dh492.25 18K gold is Dh421.75 and 14K gold is Dh329.
People who study the market say that gold prices went down because of things happening in the world. The Federal Reserve decided to change interest rates, which made the US dollar stronger. This puts pressure on Dubai gold prices. There are also problems between the US, Israel and Iran and issues, with the Strait of Hormuz which makes the market very unpredictable.
Experts say that higher energy costs and changing ideas about inflation have made investors want real returns. This has made gold less appealing in the term even though it is seen as a safe asset for the long term.
The drop in gold prices is a surprise for people living in Dubai. Usually people buy gold during Eid. Now that prices are than 50 Dirhams lower than in March many are buying gold at the last minute.
Maha Hussain, a Dubai resident said the price drop feels like a bonus for Eid. She thinks her family might buy jewellery this year than they planned.
The lower price is news for buyers but experts warn that if the market stays uncertain gold prices might go up and, down a lot in the next few days.
