Image used for representation.
High prices of gold has failed to dent the buying spirit of customers as the sale of yellow metal surged during Eid Al Fitr and the holy month of Ramadan. Sales of gold jewellery in the country surged by up to 25 percent during Eid holidays and Ramadan.
“We witnessed around 20-25 percent increase in the sale of gold jewellery during the holy month of Ramadan. One of the main factors behind high sale was upcoming vacation period. Expatriates tend to buy gold before going to their home country during Eid holidays and summer vacation,” Santosh TV, Regional Head, Malabar Gold and Diamond, Qatar told The Peninsula.
“Another supporting factor was an Indian festival ‘Akshaya Tritiya’ which was celebrated in the first week of May. We witnessed high sale because Indians buy gold during Akshaya Tritiya,” he added.
Akshaya Tritiya is an Indian festival during which they consider it as auspicious to buy gold jewellery, coins and bars. Gold has become dearer during the last two weeks as prices of the yellow metal have risen due to high demand and other global factors. A gram of 22 carat gold was trading yesterday at QR156 while it was trading at around QR145 per gram two weeks back.
“Eid is always a busy time for jewellers and we were expecting this kind of response because this is an annual phenomenon.
“Every year we see the rush of customers during Eid Al Fitr and the holy month of Ramadan for buying gold,” store manager of a jewellery showroom told The Peninsula.
“The demand was more for jewellery compared to gold bars. The demand for gold bars is not seasonal and it fluctuates with prices,” he added.
Gold has become dearer during this year as prices of the yellow metal have risen due to high demand and other global factors.
A gram of 22 carat gold was trading yesterday at QR156 while it was trading at around QR150 per gram at start of January this year.
In the remaining part of 2019, the trend in gold prices will depend on the movement in the value of dollar and interest rates in the US.
A weaker dollar fuels demand for gold by making it cheaper for holders of other currencies, while lower bond yields reduce the opportunity cost of owning non-yielding bullion. Gold is highly sensitive to the rising interest rates because they push up bond yields and tend to boost the dollar.
