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Sun 18 Aug 2019 03:49 PM

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Gold prices dip in Dubai on back of strengthened US dollar

Record prices expected to increase ahead of Diwali celebrations

Gold prices dip in Dubai on back of strengthened US dollar

A strengthening of the dollar has seen a slight dip in the price of gold, according to Karim Merchant, group CEO and MD of Pure Gold Jewellers.

He told Arabian Business that 24 karat was valued at AED 183.25 compared to AED 184.25 the previous week; while 22k is trading at AED 172.25, down from AED 173 from last week.

However, prices remain at record levels and Merchant is expecting them to rise further as the Indian festival of Diwali approaches.

“Hindus consider it auspicious to purchase gold during the festive season,” he said.

The fear of an impending global recession and uncertainty over US-China trade war will also keep the gold prices high, he added.

Last year, Pure Gold Jewellers announced the opening of seven new concept stores in the UAE, Kuwait and Oman, adding to its 150 existing stores. The new openings – which included locations at Al Ain Mall, World Trade Centre and Yas Mall in Abu Dhabi - represented a total investment of over $10 million.

At the time, Merchant said he believes that “an upward trend is inevitable in the economic cycle.”