Gold Sales Rise as Silver Demand Slumps

TDT | Manama

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Gold buying has gained momentum across Bahrain as families prepare for the wedding season, while silver demand has fallen sharply despite lower prices.

Jewellers said 21-carat gold was priced at BD43 per gram on Saturday, down from more than BD60 about six months ago, encouraging buyers to return. Gold was trading at $4,044.63 an ounce after the US Federal Reserve kept interest rates unchanged.

Bridal jewellery and gold bars are leading sales. Families are purchasing wedding sets for celebrations during Rabi Al Awwal, while investors are buying bullion to safeguard savings amid market uncertainty.

Silver, however, continues to struggle. A kilogram now costs about BD800, compared with nearly BD1,400 previously, but demand has dropped by around 80 per cent.

Mohammed Al Kuwaiti of Almerriyah Jewellery said the lower gold price had boosted sales, with many customers worried prices could rise again. He added that demand for wedding jewellery and gold bars remained strong.

Hussain Al Natai of Al Safa Jewellery said gold sales were steady, although regional tensions and the summer travel season had slightly reduced customer numbers. Some buyers were still waiting in the hope of further price declines.

Ali Al Sayegh of Al Ghadriya Jewellery said younger women increasingly viewed gold as both jewellery and a long-term investment, while daily purchases of gold bars reflected growing interest in preserving wealth.

Investment researcher Talal Ramadan said the Federal Reserve's decision to leave rates unchanged had reduced market uncertainty, while ongoing geopolitical tensions continued to support demand for gold as a safe-haven asset.