Gold Prices Fall 15%, Eid Shopping Surges

TDT | Manama

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Gold markets across Bahrain witnessed a notable increase in customer activity during the Eid Al-Fitr holiday, coinciding with a decline in prices amid regional tensions.

Gold shop owners told Al-Ayam that the market experienced a remarkable revival during the festive season. The price of 21-carat gold fell to around 47 Bahraini Dinars on Monday evening, down from approximately 56 Dinars last week, marking a drop of about 15%.

Customer turnout surged by over 60% compared to the Ramadan period, driven by the festive season, particularly as Eid Al-Fitr coincided with Mother’s Day this year, boosting local purchasing activity.

Shop owners attributed the price decline to multiple factors, including regional tensions related to the closure of the Strait of Hormuz, U.S. President Donald Trump’s announcement of a five-day delay on strikes targeting Iranian energy facilities, and Federal Reserve decisions on interest rates, which had a direct impact on financial markets. Global gold prices have remained volatile, experiencing waves of ups and downs.

Price Drop Seen as Buying Opportunity

Ahmed Emad, owner of “Al Omda Jewelry,” said Federal Reserve interest rate decisions have directly affected financial markets, leading to declines in assets such as metals and stocks, while oil prices rose unexpectedly.

He described the current period as an ideal opportunity for those looking to purchase gold, especially given the increased demand during the festive season. Recent days have seen heavy customer traffic, though supplies of gold bars remain limited. This scarcity has led some traders to sell at higher prices due to rising shipping and insurance costs and disruptions to regional air transport.

Emad advised investors to seize the current price dip as a long-term opportunity, predicting that prices would rise again, surpassing previous levels.

Gold at a Critical Stage

Market analyst Mohamed Riad said the current gold market phase should be viewed within a broader historical context rather than as a short-term price movement. He noted that gold recently reached nearly $5,600 per ounce before dropping by 15–20%. Riad emphasized that the current declines do not indicate weakness in gold performance.