Gold in the UAE drops AED 20.50 per gram, sparking demand for bullion

Retail gold prices in the UAE dropped by up to AED 20.50 per gram in the largest weekly decline in nearly four months, according to Emirates 24/7.

The website reported that retailers observed an improvement in buying demand following the drop, with demand centered on 18-karat jewelry and gold bars weighing 20 and 50 grams.

This local decline aligned with the metal's drop in global markets, as spot gold closed at $3,998.35 per ounce on Friday with a 0.6% loss, falling 4% over the week in its worst performance since June.

According to a Reuters report, the global fall in gold came as Brent crude rose to its highest level in more than five months along with strong US inflation data, reinforcing bets on interest rate hikes.

What do these terms mean?

Retail price: The price paid by the end consumer to purchase gold from stores, including the metal price plus the jeweler's margin and operational costs.

18-karat: A measure of gold purity meaning that 75% of the alloy is pure gold, while the rest consists of other metals that increase its hardness.

Gold bars: Pieces of gold sold in specific weights such as 20 or 50 grams, favored by consumers for savings.

Spot gold: The buying and selling price of gold for immediate delivery, used as a global benchmark for the metal's prices.