Gold sparkles like never before

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Email: mail@newsobahrain.com

Owning gold is a prestige for many, just like owning the iPhones. So, no matter what the prices are people will queue up to buy them. However, the recent surge in the prices of yellow metals, experts say, is capable of wrecking havoc on the dreams of commonman.

This warning follows the record high for 24-karat gold in Bahrain, which hit BD 28.260 per gram on Friday. They say they prices of the yellow metal is all set to hit BD 37 per gram for 21-karat gold, which will be a truly unprecedented surge.

Echoing this sentiment, Local gold traders also indicate that there is no sign of a downturn in the near future, as this surge follows months of steadily rising prices.

They, however, still emphasize that gold remains a safe haven for investors, although minor daily fluctuations are to be expected. Ahmed Emad, owner of Al Omdah Jewelry, attributed the price spike to escalating global political tensions and uncertainties.

He highlighted gold's strong correlation with the US dollar, noting that recent price increases have exceeded 25%. He provided specific prices: 21-karat gold at BD 28.468 per gram, 22-karat at BD 29.609, and 18-karat at BD 24.239.

The price of gold per ounce reached $2,659.60, marking a significant increase from $2,492 last month, representing a jump of approximately 6.71%.

Several gold shop owners confirmed that the current geopolitical climate and regional instability are significant factors contributing to the volatility and rising prices of gold.

Salam Al Nateai, owner of Al Hadab Jewelry, echoed this sentiment, stating that regional instability is the primary driver behind sustained price increases. He connected the gold price hikes to global stock market performance, largely influenced by major world powers.

Al Nateai also noted a trend among young consumers purchasing gold bars (priced between BD 200 and BD 300) for investment purposes, spurred by the prolonged high prices.

Abdullkareem Al Shahabi, owner of Al Murtaja Jewelry, also predicted continued price increases, expecting 21-karat gold to reach BD 37 per gram. He observed that the geopolitical situation has led to a significant decline in gold sales, with recent trends showing minimal purchases of smaller, less expensive items.