UAE consumers are increasingly locking in gold prices ahead of Dhanteras on Friday, November 6, jewellers say, as volatile rates push buyers to plan purchases earlier than usual.
In the UAE, 24K and 22K gold prices were trading at Dh484 and Dh448.25 per gram, respectively, on Wednesday morning. The 24K gold rate had dropped to Dh467 per gram over the weekend, prompting UAE residents to lock in prices offered by leading jewellers ahead of the festival.
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Chirag Vora, managing director and CEO of Bafleh Jewellers, said customers are growing more conscious of timing, and that price locking gives them “greater confidence” to plan purchases without worrying about sudden increases. Interest is strongest among those planning larger buys, including wedding jewellery and festive shopping.
Anil Dhanak, managing director of Kanz Jewels, said price protection schemes are becoming more attractive to customers who have already decided to buy. The trend is especially visible among Indian expatriates, for whom Dhanteras is an auspicious occasion for purchasing gold jewellery, he added.
The Diwali Gold Rush, running until November 12 at more than 170 jewellery stores, offers shoppers a share of 1kg of gold. Customers who spend Dh1,500 on jewellery at a participating store receive a raffle entry. Five winners will each receive 100g of gold as Dhanteras prizes, and there is a 500g grand prize.
Organised by Dubai Festivals and Retail Establishment (DFRE), part of the Dubai Department of Economy and Tourism (DET), the promotion is part of the Festival of Lights celebrations.
Participating brands include Arakkal Gold & Diamonds, Kanz Jewels, Bafleh Jewellery, Jawhara, La Marquise Diamonds & Watches, Lifestyle Fine Jewelry, Tajvi Gold & Diamonds, Thangals, Meena Jewellers, Kundan Kala Jewellery and Malabar Gold & Diamonds. Some jewellers are also offering discounts, gifts with purchase and special making-charge deals.
Beyond the gold rate
Both retailers said buyers are looking beyond the gold rate.
Vora said shoppers are weighing making charges, design variety, purity and the overall shopping experience, and that transparent pricing is key to building confidence.
Dhanak said customers should consider overall value, including craftsmanship, purity and making charges.
Both executives expect buying interest to build as Dhanteras approaches.
Vora noted that younger consumers are joining traditional gold jewellery buyers, while Dhanak pointed to Dubai’s well-regulated market and transparent pricing as strengths for buyers.
Source: Khaleej Times