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Emirates 24|7 reported on October 18 that gold and jewellery stores have intensified discounts and fee waivers on bullion purchases as lower prices stimulate buying interest throughout the UAE. Officials from retail outlets told the newspaper that the promotions reflect heightened competition among stores seeking to leverage the uptick in bullion sales during the current period of declining values. The price of 24-carat gold stood near 502 dirhams per gram after a drop of 3.5 dirhams, a level that has encouraged both investors and regular buyers to increase orders for bars of varying sizes.
A trader identified as Ashwin Son told Emirates 24|7 that local markets are witnessing growing rivalry among gold dealers through zero-fee offers on bullion to take advantage of rising purchases as the yellow metal becomes more affordable. Some retailers have eliminated making charges entirely while others have cut fees to as low as 50 dirhams per ingot, the newspaper said. The measures coincide with a broader effort to clear inventory and attract customers who had deferred acquisitions during earlier periods of elevated pricing.
The World Gold Council assessment released in October found that global gold prices declined 8.5 percent during September even as exchange-traded funds recorded record inflows of 10 billion dollars. That monthly drop followed a peak earlier in the year when the metal reached 5,405 dollars per ounce in January before retreating on stronger dollar and higher Treasury yields. Central banks continued adding to reserves with 39 tonnes purchased in August according to the council’s data which places cumulative buying at elevated levels through the third quarter.
Khaleej Times figures from mid-October showed 24-carat gold in Dubai trading as low as 499.75 dirhams per gram before a partial recovery to 503 dirhams, a fluctuation that retailers have used to highlight buying opportunities. The National reported earlier patterns in which price volatility prompted similar responses including reduced making charges and instalment plans to sustain consumer engagement. Such tactics have proven effective in maintaining transaction volumes in a market where physical bullion demand often accelerates during price corrections.
Industry participants noted to Emirates 24|7 that the current wave of promotions targets both jewellery and investment segments with a focus on bullion products that carry no fabrication costs in the latest offers. This approach has helped shift buyer preference toward standardised bars amid expectations of potential price stabilisation in coming months. Retailers continue to monitor global factors including United States monetary policy decisions that have influenced recent movements in the precious metals sector.
