Some residents sell gold, jewellery as prices of yellow metal hit record

UAE gold prices

The recent surge in gold prices has prompted some UAE residents to capitalize on the opportunity by selling their gold and jewelry, as the precious metal hit record highs. With gold prices reaching unprecedented levels, investors and individuals alike are weighing their options, some opting to cash in while others choose to hold onto their investments for the long term.

Gold prices recently soared to new heights, with the price of gold per ounce reaching $2,395.29, and US gold futures touching $2,401.8 per ounce. This surge has been attributed to various factors, including continued buying by central banks to bolster their reserves. In the UAE, the price of 24K gold reached Dh289.5 per gram, with other variants such as 22K, 21K, and 18K also witnessing significant increases.

Investors and residents in the UAE have adopted different strategies in response to the fluctuating gold market. Some seize the opportunity to sell their gold holdings when prices peak, aiming to capitalize on the high market value and earn additional income. John Paul Alukkas, managing Director of Joyalukkas Group, explains that while many individuals view gold as a long-term investment and choose to retain their holdings despite high prices, others take advantage of market peaks to sell their jewelry, coins, and bars.

The decision to buy or sell gold is often influenced by market dynamics and individual investment strategies. When gold prices are low, it is seen as a favorable time to invest, while during price peaks, some residents opt to sell their holdings. This cyclical nature of the gold market reflects the ebb and flow of investor sentiment and market conditions.

In addition to central banks, China's role in driving demand for gold has also been significant. Despite a recent slowdown in demand, Chinese gold consumption remains strong, particularly in the investment sector. Ray Jia, research head for China at World Gold Council, notes that while jewelry consumption may decrease during the traditional off-season, investment demand for gold in China continues to show strength.

Overall, the record-high gold prices have prompted a spectrum of responses from UAE residents, from selling their holdings to capitalize on market peaks to retaining their investments for long-term gains. As the gold market continues to evolve, individuals will continue to navigate the complexities of investment decisions, weighing factors such as market trends, economic indicators, and personal financial goals.