Gold price increase attributed to holiday purchases and wedding season
An increase in the price of gold has been blamed on holiday buyers and the traditional wedding season in the UAE.
Karim Merchant, group CEO and MD of Pure Gold Group, told Arabian Business this morning that 22 karat is currently trading at AED161.25 per gram and 24 karat at 171.50 per gram, up slightly from last week.
He said: “There is an uptick in the UAE jewellery retail sector from holiday buyers, purchasing gold jewellery as gifts or investment as they go for their vacations. Also, it is the wedding season in the UAE and the demand for gold jewellery is high during this time.”
Although the upward trend of the price of gold continues, Merchant does not foresee a massive increase in the coming weeks.
He added: “The US economy is strong and that has a positive effect on gold prices, but overall the global economy is slowing and this will have an impact on investor decision making. We are also waiting for the US Fed decision on interest cuts to be announced on July 31.”