Gold Prices Fluctuate as Dubai Residents Seize Opportunities
A Dubai local who purchased gold on Wednesday, when prices fell to a notable low amid a volatile market influenced by U.S. President Trump’s fluctuating tariff policies, enjoyed a profit exceeding Dh1,200 within just one day. This anonymous single mother of two has been a regular gold investor, acquiring ten 10-gram gold coins after closely monitoring prices for nearly two weeks.
“I’m not an expert investor, but for the past year and a half, I’ve been buying gold coins each month,” she mentioned. “In March, I set aside a bonus specifically for gold, but the rates soared to an all-time high. So, I decided to wait. On Wednesday morning, I logged in to check prices, and noticed they had dropped significantly. I quickly purchased ten gold coins online from a reputable dealer. By Thursday, I realized my investment had netted over Dh1,200 in profit.”
Increased Buying Activity in the UAE
On the same Wednesday, several UAE gold retailers reported a surge in customer purchases. “There was a noticeable rise in customer transactions when gold prices dipped,” stated John Paul Alukkas, Managing Director of Joyalukkas International Operations. “Many clients capitalized on our price-hold offers, securing purchases at the lower rates, especially with the Akshaya Tritiya festival approaching. Customers understand that gold continues to be a timeless and reliable investment, leading to strong participation from both seasoned and first-time buyers.”
On Thursday, gold prices rose by more than Dh10 per gram. According to the Dubai Jewellery Group’s website, 24K gold opened at Dh376.5 per gram, gaining Dh13.5 compared to Wednesday’s opening price of Dh363. Similar increases were noted for 22K and 18K gold.
Cautious Consumer Behavior
Despite the increase in sales, some industry professionals observed there wasn’t a “significant” change in buyer patterns. “While there was a surge in sales during the price drop, the fluctuations were too brief to see a substantial shift in consumer behavior,” noted Amina Mohammed Ali, Managing Director of Zaiba Jewellers. This sentiment was echoed by Nishin Thaslim, Chairman of the Morickap Group of Companies, who highlighted that many potential buyers are still waiting for lower prices before making a purchase.
Days after introducing sweeping ‘reciprocal’ tariffs on various countries, Trump reversed course, announcing a 90-day pause on implementing these tariffs. However, China faced a hefty 125 percent duty—leading to chaos in global markets and significant price fluctuations.
Navigating Market Volatility
Terence Hove, Senior Financial Market Strategist at Exness, commented on the mixed reactions to the decline in gold prices, attributing them to several influencing factors. “Some investors sold gold to secure profits or offset losses from other assets due to the risk of margin calls amidst market turbulence, while others seized the moment to buy gold as a safe haven due to persistent market challenges, particularly surrounding U.S.-China trade relations,” he explained. “Central banks are likely to continue enhancing their gold reserves, which should provide further support for the market.”
Hove emphasized the importance of vigilance for investors during such times. “Diversification and risk management are crucial strategies to mitigate exposure to market volatility,” he advised. “In light of current uncertainties, it’s essential for investors to remain cautious and attentive to emerging developments in trade policies.”
Despite the volatility, Amina reiterated her counsel for individuals to consider investing in gold. “There will be price fluctuations owing to uncertainty over the next few months,” she stated. “However, historically, gold has appreciated in value over time, and with anticipated further increases, now may be the best time to buy.”
Nishin reinforced this notion, suggesting that ongoing geopolitical tensions contribute to a climate of uncertainty. “In such circumstances, gold is often considered a safe-haven asset for wealth preservation when other investments face instability,” he remarked. “Additionally, the tradition of purchasing gold during Akshaya Tritiya has been passed down for generations, which confirms that now is indeed an opportune time to invest in gold.”