Surge in UAE gold shop crowds despite record prices; Traders point out right timing and reasons

ABU DHABI: Despite record-high prices, gold shops in the UAE are experiencing a significant surge in sales, revealing a notable boom in the gold business across the country.

Nishin Tasleem, chairman of Nisika Jewelry, highlighted that people are flocking to purchase gold under the assumption that prices might surge even more. He noted a substantial recent increase in sales, attributing it to the trend of rising gold prices.

"UAE residents, including expatriates are showing a keen interest in buying gold at these record prices. Although the quantity of gold being purchased is relatively low, there has been a noticeable rise in the number of customers visiting the shops," said Nishin. On Friday, gold prices reached a staggering $2,075 (Rs 1,73,028.23) per ounce.

Suresh Babu, a general manager at Saiba Jewellers and an expatriate, confirmed that all outlets in Dubai are witnessing heightened sales. He pointed out the anticipation of a further price increase as one of the primary reasons for this surge. Experts have suggested that gold prices might escalate up to $2400. Babu highlighted the usual trend of rising gold prices as December approaches and expects this trend to persist.

Shamlal Ahmad, managing director of Malabar Gold and Diamonds, expressed his belief in the continuation of the upward trend in gold prices. "Gold prices have crossed crucial milestones, attracting investors who view gold as a safe investment. The anticipation is for further increases in gold prices in the coming weeks," Ahmad added.

Traders also noted an increase in the number of tourists arriving in the country, attributing this as another factor contributing to the surge in sales. Many Indians have returned to Dubai post the Diwali holiday, and with December approaching, a month favored for tourism due to favorable weather, the demand for gold is expected to soar even higher. They remain optimistic that this trend will gain more momentum.

The surge in sales at UAE gold shops amidst soaring prices signals a robust interest in gold, with experts foreseeing a continued upward trajectory in the coming weeks.