Gold Demand Turns Investment

TDT | Manama

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This year’s Akshaya Tritiya, a festival associated with gold purchases within the Indian community, came amid fluctuating gold prices.

Gold has continued its upward momentum in recent days, following a period of mild fluctuations driven by shifting global cues and regional developments.

In Bahrain, 22K gold prices have risen from around BD 51 to the BD 54–55 range, reflecting broader strength across the precious metals market.

Speaking to The Daily Tribune on the occasion and in reference to recent gold price fluctuations, Shamlal Ahamed, MD – International Operations, Malabar Gold & Diamonds, said: “Gold prices have fluctuated in recent days due to global factors such as economic uncertainty, inflation concerns, and strong safe-haven demand. Despite short-term movements, the long-term outlook remains steady, with gold continuing to be seen as a reliable store of value and a preferred long-term investment.”

Regarding Akshaya Tritiya, Shamlal noted that gold sales in Malabar were encouraging, with a strong customer response.

“Demand remained resilient, supported by the festival’s cultural significance and growing awareness of gold’s long-term value as both jewellery and an investment,” he added.

Meanwhile, Riyaz from Adel Khalef Jewelry's, which caters to the local market, told TDT that despite a few supply issues last month, the store has continued to see regular visits from its loyal customers, reflecting steady support from long-time buyers.

However, reflecting on a broader gold buyer response, Muhamed Hussain Mualim, Managing Director of Al Sarraj Jewellers and advisor to the Jewellers Association, said market sentiment remains cautious on spending amid current business conditions, with gold prices fluctuating due to regional tensions and oil price movements.

Investor shifts between gold and oil-linked assets have added to short-term volatility, though prices have recently started stabilizing closer to earlier levels. “Compared to previous years, Bahrain’s gold market remained relatively subdued on Akshaya Tritiya, reflecting cautious consumer sentiment.”

He added that once geopolitical and oil market conditions stabilise, investor confidence is expected to return to gold, which could support another upward movement in prices.

According to the India Bullion and Jewellers Association, demand remained weaker across most regions, with only select pockets in the south showing resilience.

Experts say buying patterns are gradually changing, with gold increasingly seen as an investment asset rather than only a festival-driven purchase. Data from the World Gold Council reflects this shift, showing a 24% year-on-year drop in jewellery demand in 2025, while investment demand rose 17% to its highest level since 2013.