Huge crowds jammed gold shops in Abu Dhabi to take advantage of the drop in gold prices to 80 dirham per ($21.77) gram on Thursday night and shop owners expect the rush will continue for a week until the Diwali festivities.
Shop owners estimate that each shop in downtown Abu Dhabi sold about 30 to 50 kilos. “Sales have gone up 400%,” said the chairman of the Golden Jewelry Group. Gold prices had dropped to 84 dirham per gram in August, but there were no such scenes of people fighting queues to get to the gold, shop owners said. They expect the prices to go up from next week.
Gold fell for a fourth day in Asia and headed for its second weekly decline as the rising dollar and a slump in equities curbed investor demand for the precious metal. Gold is down 8.4% this week as the dollar rose to a 23-month high against the euro. “The decline in the gold price is not only linked to a further strengthening in the US dollar but also evidence that physical buying of gold via ETFs is beginning to fade,” Deutsche Bank AG analysts wrote in a weekly report on Friday. “Given the ongoing appreciation in the US dollar, we estimate fair value for gold to be between $600-$620 an ounce,” they said. (Gulf News)