Gold dip brings Bahrain buyers back

TDT | Manama

Email: mail@newsofbahrain.com

Gold shops in Bahrain have reported a lift in trade after prices fell from May’s highs, bringing buyers back for jewellery, gifts and savings, though demand for bullion remains below the rush seen in earlier months.

Traders said 21-carat gold dropped to about BD43 a gram in recent days before rising again to nearly BD45. Some said the fall from about BD50 in May had cut prices by close to 10 pc and helped draw shoppers who had been waiting on the sidelines.

The dip came as families were buying gifts for high-achieving students after school results were announced. Shop owners said some parents had bought gold pieces for their sons and daughters to mark their results.

But the mood is mixed. Some buyers are holding back in the hope of a further fall, while others see the lower prices as a chance to buy before gold climbs again. Dealers said some customers had also looked at silver as a cheaper way into precious metals.

Prices rose again on Saturday evening as markets watched political and economic shifts abroad. Traders said 21-carat gold reached about BD45 a gram, while the ounce was quoted at $4,218.9.

Mohammed Riyadh, a gold expert, said the metal was going through a normal correction after sharp gains in recent months. He said the fall did not by itself mark a change in the wider path of prices.

He said gold was still well placed over the medium and long term, despite pressure from the strong dollar and expectations that interest rates would stay high. He pointed to geopolitical strains and central bank buying as factors still helping the metal.

Mohammed Taha, owner of Al Isra Jewellery, said trade had picked up after prices fell by about BD5 a gram.

‘The fall in the gold price has fed straight into the final price of jewellery, including workmanship and VAT’, he said. ‘That has made pieces more attractive to buyers.’