Gold Prices Reach Record Highs in Bahrain

Gold prices have surged to historic levels in global markets, including Bahrain, marking the sharpest increase in more than a decade.

In Bahrain, the price of 21-karat gold rose to BD 38.400 per gram, compared to BD 26.400 during the same period last year — an increase of 45.5%. Meanwhile, 24-karat gold reached BD 43.82 per gram, up from around BD 30 a year ago.

The sharp rise has raised concerns among both customers and traders, who fear the upward trend will continue. Despite this, many still view gold as the safest investment, whether through bullion or long-term savings. Traders even expect prices to keep climbing, with global gold potentially crossing the $4,000 per ounce mark by the end of the year.

Traders Share Insights

Ahmed Emad, owner of Al-Omda Jewelry, described the rise as “historic,” noting that for the first time 21-karat gold hit BD 38.400, 22-karat reached BD 40.16, and 24-karat touched BD 43.82 per gram. Globally, an ounce of gold stood at $3,586.41.

He explained that the surge was largely driven by China’s move to boost its gold reserves after the Chinese yuan weakened. China has also been gradually reducing its holdings of US bonds in an effort to reduce reliance on the dollar, which increased global demand for gold. Emad warned that other countries may follow China’s path, possibly leading to major changes in the global financial system.

Although overall purchases have slowed slightly, he said demand remains steady, especially during the wedding season.

European Banks Drive Investments

Another jeweler, Adel Khalaf, owner of Khalaf Gold, pointed to massive European bank investments as another key reason for the price surge. He said about $3.5 trillion was invested in gold just ten days ago, pushing prices higher.

Khalaf predicted that gold could soon hit $4,000 per ounce, adding that ongoing global trade tensions are also fueling the rally. While gold prices often fluctuate, he noted that the overall trend over the past several months has been consistently upward, with gains of around 10%.