Gold Prices Soar to 10-Year High in Bahrain, Leaving Market Stalemate

TDT | Manama

The Daily Tribune - www.newsofbahrain.com   

The global and Bahraini gold markets have witnessed a dramatic surge in prices, reaching levels not seen in over a decade. The price of 21-karat gold has climbed to 26.400 Bahraini Dinars per gram, while 24-karat gold has reached approximately 30 Bahraini Dinars, causing significant concern among both customers and traders.

A visit to the Dilmun Gate Gold Market by our sister newspaper Alayam revealed a market almost devoid of buyers. Many customers are choosing to sell their gold jewelry to capitalise on the high prices rather than purchase new pieces.

“The surge in gold prices has significantly impacted buying activity,” explained the owner of Esra Jewelry. “Many customers find it difficult to afford gold at its current price.” He added that customers are primarily selling their gold jewelry, taking advantage of the high prices, instead of purchasing new pieces.

The owner of Sadaf Jewelry attributed the surge to the unstable situation in the region, including wars and political tensions. These factors have led to increased demand for gold as a safe haven for investment.

“The sharp rise in prices has discouraged many customers from purchasing,” he stated. “This phenomenon negatively affects the market, as sales have significantly decreased. We expect this situation to continue if the unstable conditions persist.”

Despite the current market downturn, gold remains a preferred choice for many investors, suggesting that demand may continue in the future.

“We hope the global problem is resolved quickly so that the price of gold stabilizes as usual,” said the shop owners. They emphasised that stability in global conditions would have a positive impact on the local and international gold markets.

Fatima, a customer at one of the shops, expressed her concern: “This significant price increase is unprecedented. I came today to sell some gold jewelry to benefit from the rise, but we can’t afford to buy. Therefore, I see the market today as almost empty. I hope the prices return to their previous levels and the market returns to its bustling state.”