Many UAE residents and investors are selling gold and silver to pay off credit card loans and make down payments for property, taking advantage of record-high prices. In Dubai, 24K gold reached a record Dh666 per gram on 29 January but fell sharply to Dh589.5 per gram over the weekend. Other variants also declined, with 22K, 21K, 18K, and 14K gold selling at Dh545.75, Dh523.25, Dh448.5, and Dh349.75 per gram, respectively. Spot gold fell to $4,893.2 per ounce, down 8.14 percent from an all-time high of $5,500, after the US dollar strengthened following the appointment of Kevin Warsh as chief of the US Federal Reserve.
The price fluctuations prompted long queues of sellers at the Dubai Gold Souk on Thursday and Friday. Shehzadi Rehman, a Dubai resident for nearly 30 years, sold old gold jewelry for a 25 percent profit, noting that many residents are selling ornaments they no longer wear to invest in real estate or foreign assets. She added that the sell-off also reflects investors shifting portfolios into other asset classes.
Property prices in Dubai have steadily risen over the past five years, providing double-digit returns despite market stabilization. Rising rental costs are also motivating long-term tenants to buy property.
Another resident, Mayank Dudeja, sold 35 percent of his silver holdings during the recent rally and decline. He said the market activity was partly driven by social media advice and peer pressure, as residents feared a potential 70 percent drop in silver prices. Despite this, many investors have retained significant portions of their gold and silver holdings, with expectations that silver could rebound above $100, though the market is likely to trade sideways in the near term.
Courtesy: Waheed Abbas/ Khaleej Times
Bd-pratidin English/ Jisan
