Jewellery prices in UAE hit highest level in a week, but analysts warn buyers against betting on precious metal
UAE consumers have been warned not to put most of their savings into gold jewellery, even as prices are forecast to hit a whopping $1,800 an ounce and some big-time investors are already pouring billions of money into the precious metal.
The price of 24K stood at Dh159.50 per gram on Monday, down nearly Dh3 per gram from early April, but up from about seven days earlier. At the same time, spot gold hit $1,318.85, the highest price reached since late April.
Gold’s recent rally has been due to a weak US dollar.
Big-time gold investor
While prices seem to fluctuate every week, some investors are expecting gold to hit $1,800 an ounce from just a little over $1,300 an ounce.
One of these investors is Egyptian business tycoon Naguib Sawiris, who has reportedly put 50 per cent of his money into gold. The billionaire said he believes gold prices will rise further while stock markets will crash, so he has invested half of his $5.7 billion net worth in the precious metal.
“In the end you have China and they will not stop consuming. And people also tend to go to gold during crises and we are full of crises right now,” Sawiris told Bloomberg Television.
Source: Gulf News