By Gavin Gibbon
Karim Merchant, group CEO and managing director, Pure Gold, expecting Diwali boost for retailers
The price of gold has stabilised following the partial trade deal announced between the United States and China.
Although tensions between the two countries remain, there is “renewed optimism” in the industry, according to Karim Merchant, group CEO and managing director, Pure Gold.
Gold prices have remained steady for the past week, with 24 karat trading at AED180.50 per gram, down from last month when it was valued at AED185 per gram.
Merchant also said that Brexit was weighing heavily on investors’ minds, although he added: “The fact that the market has improved after US-China deal shows that the trade war between the two countries was a bigger concern.”
And he believes retailers are in for a busy time, with Diwali getting under way later this week.
He added: “Locally, we see sales picking up as retailers are gearing up for Diwali that begins on Friday, October 25. The first day of Diwali is Dhanteras, an auspicious day on which Hindus buy gold jewellery. Many retailers have launched special collections and offers for Diwali in anticipation of demand.”