Dh1,200 profit in 24 hours: UAE residents make quick gains as gold recovers after record low
A Dubai resident who purchased gold on Wednesday as the price hit one of its many low points in the erratic gold market just after US President Donald Trump's tariff yo-yo found a profit of more than Dh1,200 within 24 hours. A single mother of two children, who did not wish to be identified, said she buys gold frequently and purchased the ten 10gram gold coins. She said she had been following the prices for nearly two weeks.
Said she's not an investor but has been buying gold coins once every month for last year and half I received my bonus in March which I put aside for gold coins, however, the prices had already reached an all time high. That is why I decided to wait and watch. I logged in to site on Wednesday morning and everything looked cheaper than I had seen for quite some time. I jumped in and ordered from a well-known online seller of gold coins, ten gold pieces. When I checked the price today [Thursday] I realised I have made a profit of $1,200 [more than Dh1,200],"}
On the other hand, UAE gold dealers experienced an influx in buyers on Wednesday. John Paul Alukkas, Managing Director - International Operations, Joyalukkas, said, "Consumer sentiment improved significantly as we registered a surge in consumer activity when gold prices softened marginally.
Hema Raghunandan: A large number of customers, took up on the option of holding the prices and secured their purchases at the lower price as they are already expecting that the prices will rise soon with the upcoming Akshaya Tritiya festival. Investors understand that gold continues to be an ageless and refuge. We saw great involvement from both the repeat buyers and the first-time buyers.
Gold prices soared more than Dh10 per gram on Thursday. According to the Dubai Jewellery Group website starting price for 24K was Dh376. Dh13 more per gram — to Dh213.58. The comeback is in comparison with a price of Dh363 opening on Wednesday and Dh379 on Friday, April 5. Similar hikes were observed in the rates of 22K and 18K gold.
Cautious buying
However, others pointed out that they saw no real change in the behaviour of buyers. While there was a slight increase in purchases with price drop, decrease wasn't sustained long enough to cause major change in buying behaviour, said Amina Mohammed Ali, Managing Director, Zaiba Jewellers.
Nishin Thaslim, chairman of Morickap Group of Companies confirmed her comments. So here seems to be a huge group of who are still waiting for a price cut to buy gold, he said.
Only days after declaring high 'reciprocal' tariffs on all nations of the world, Trump reneged and declared a 90-day hold on implementing the decision. But China he slapped with a hefty 125 per cent tariff. The decision wreaked havoc across markets around the world, sparking wild swings.
He suggested several influences were at play that resulted in a mixed response on the pullback in gold pricing. Further analyzing, Terence Hove, Senior Financial Market Strategist at Exness, stated what they had observed thus far in response to that dip in activity this week. Also read:Withdrawal of 26 tons of gold How to make up for the mass gold sale for profit?немного to cover losses in other assets, because the risk of margin calls from market volatility were high, but shopping sat too, he said. The dip in gold was viewed as a buying opportunity for many market participants, who see it as a potential safe haven, given the ongoing market concerns (especially the US-China trade war). Another positive factor could be the accumulation of gold from central banks, who might not stop buying.
Market volatility
Investors should stay wary, Terrence said. It is important that these elements be retained as protection against exposure to volatility diversification itself a form of Rain, 'he said. “In this uncertain environment, we recommend investors stay on the lookout for updates about trade policy.
Yet through the volatile changing landscape, Amina said that her advice is for folk to go out and buy gold. Gold prices will move and be far bad in the months ahead of the uncertainty, she said. But over time, the price of gold has always gone up. Prices are always going to be higher tomorrow – now even more than ever – so it is better to purchase today."
Geopolitical risks have created uncertainty within the day stock, Nishin said. He said,Limited supply, no associated counter-party risk, and universal investor appeal has made gold a benefactor in wartimes as a wealth preserver when the volatility in other investments risks undermining balance sheets. Moreover, the purchasing of gold during Akshaya Tritiya is more of a tradition which gets transferred from generations to generations. It depends on the specifics of your questions, so it is certainly time to accumulate gold."
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