Gold demans rises in bahrain as silver sales plunge
Gold shops across Bahrain have reported increased buying and selling activity in recent days, coinciding with the approaching wedding season in Rabi’ Al Awwal, while demand for silver has fallen sharply.
According to local jewellers, the price of 21-karat gold remained around BD 43 per gram through Saturday evening, following the US Federal Reserve’s decision to keep interest rates unchanged. The price of an ounce of gold was reported at $4,044.63.
Jewellers said demand for silver has declined by approximately 80%, despite its lower price. The price of silver has reportedly fallen to around BD 800 per kilogram, compared with approximately BD 1,400 previously.
Gold shop owners said overall buying and selling activity has remained relatively stable despite regional geopolitical tensions. At the same time, interest in gold bullion has increased among customers looking to use precious metals as a form of savings.
Mohammed Al-Kuwaitan of Al-Muriyah Jewellers said the decline in gold prices to around BD 43 per gram had encouraged more customers to buy, with some anticipating that prices could rise again amid continued market volatility.
He also noted stronger demand for wedding jewellery sets as the wedding and holiday season approaches.
Hussein Al-Nata’i of Safa Jewellers similarly reported an approximately 80% decline in silver demand. He said the gold market remains relatively stable, although sales have seen a slight decline due to regional conditions and summer travel.
Meanwhile, Ali Al-Sayegh of Al-Ghadiriyah Jewellers said demand for gold has improved following the stabilisation of prices. He recalled that gold prices had surged around six months ago, when the price exceeded BD 60 per gram.
Al-Sayegh also highlighted growing interest in gold among younger women, who are increasingly viewing it not only as jewellery but also as a means of saving.
Investment and precious-metals researcher Talal Ramadan said the Federal Reserve’s decision to keep interest rates unchanged was broadly in line with market expectations and helped ease uncertainty surrounding the meeting.
He added that maintaining current interest rates could provide some support for gold prices, particularly as expectations of an immediate rate increase have weakened.
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