Gold buyers step back as uncertainty slows Bahrain’s jewellery markets

The gold is still shining under the lights of Bahrain’s jewellery shops, but the usual buzz of customers has faded.

Traders say footfall in several markets has dropped sharply. With rising regional tensions and already high prices, many residents appear to be holding back, choosing caution over purchasing.

Globally, gold has recorded its second consecutive weekly decline. Spot gold fell by 1.2 per cent to 5019.25 dollars per ounce, marking a weekly drop of more than 2.9 per cent. US gold futures for April delivery also slipped 1.25 per cent to $5,061, extending their weekly losses to about 1.9 per cent.

Despite the dip, analysts say the longer term outlook for gold remains supported by its reputation as a store of value. But the strength of the US dollar and inflation concerns linked to the ongoing war have weighed on expectations that interest rates may be reduced soon, according to Reuters.

In Bahrain, the mood inside the markets reflects this uncertainty.

In a special interview with The Daily Tribune, traders said prices remain high compared with previous months. The price of 21K gold approached BD54.500 during the past week, while 24K gold moved beyond BD62. The global price per ounce has been hovering around $5096.59.

Traders also say the bullion market is facing a relative shortage. Some shipments of gold and silver bars have been delayed due to airspace disruptions in the region, while shipping and insurance costs have risen.

For one regular visitor to the gold market, the hesitation this month felt unusual.

He told The Daily Tribune that he normally buys a gold bar every month and keeps it as savings for the future. This time, however, he decided to wait.

“I usually buy regularly,” he said. “But right now everything feels uncertain. I would rather wait and see what happens.”

Across Bahrain’s gold markets, the metal still glows behind the glass counters. But for now, many buyers are simply watching, hoping the days ahead will bring a little more clarity.