Bahrain Gold Hits BD44 as Buyers Hold On

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Gold buyers in Bahrain are still paying up despite a sharp world price swing, with jewellery near BD44 a gram and bullion at about BD50 as war fears and US rate bets drive the market.

The metal climbed to about $4,119 an ounce before falling back towards $4,000, hit by a stronger dollar and shifting views on US interest rates. Oil prices, fighting in the region and fears over the Strait of Hormuz have added to the strain.

Jaafar bin Jaafar of Bin Jaafar Jewellery said demand was at a middling level, below that seen in recent weeks.

He said trade had been stronger earlier, though buyers had not left the market. Gold reached about BD44 a gram this week as the world price rose above $4,100 an ounce.

Mr bin Jaafar said local prices were being driven by events abroad. Any easing of the war or fears over shipping through the Strait of Hormuz could pull gold lower. A turn for the worse would likely send investors back towards the metal as a safe place for their money.

Sayed Mahmood Jalal of Delmon Bars said current prices offered a better entry point than those seen a month ago.

Bullion is selling at about BD50 a gram, while an ounce costs roughly BD1,590. The same amount was close to BD1,635 last month.

Buying remains healthy, he said, though well below past peaks. Purchases still outnumber sales, showing that many investors would rather hold their gold than cash out.

Jalal said Bahrain’s market often showed an odd pattern: buyers grew keener as prices rose. Many feared missing further gains and saw bullion as a long-term store of wealth.

Gold dealers expect the next move to hinge on central-bank rate calls, the dollar and the course of the war in the Middle East.

Trade has cooled from earlier months, but gold remains one of the main places investors turn when markets are unsettled. The recent fall in world silver prices has also kept much of the focus on the yellow metal.