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Thu 21 Nov 2019 12:11 PM

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UAE consumers still adjusting to high gold price, says Pure Gold CEO

Karim Merchant predicts better performance for gold retailers in 2020

UAE consumers still adjusting to high gold price, says Pure Gold CEO

Seen as a safe haven, gold prices have risen amid concerns about the global economy.


Consumers in the UAE are yet to adjust to the relatively high gold prices, according to Karim Merchant, CEO and managing director of Pure Gold Jewellers.

Merchant revealed that gold prices fell slightly this week to AED178 per gram for 24 karat.

He told Arabian Business: “I believe in the coming year, we can see better performance for the retail sector as and when consumers adjust to the new price levels.”

Safe haven

Seen as a safe haven, gold prices have risen amid concerns about the global economy.

In terms of investors, Merchant added: “Gold price is inversely proportional to the strength of the US dollar, and it is also dependent on US interest rates and investor confidence in the global economy.

"Low interest rates, weak US dollar and high risk aversion by investors are bullish for gold while the opposite is bearish for the yellow metal. These are the factors to consider when investing in gold."

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