Gold sales go up in Ramadan every year, as many people buy it in celebration of the holy month, considering it a valuable gift and also because it maintains its value in most cases with the fluctuations that global markets are exposed to.
Ramadan is considered one of the seasons gold traders in Qatar await, as sales increase in varying proportions that may reach more than 50% at their best compared to other seasons. For many, gold is a safe currency in times of crisis, and the best vessel for investment and savings. It is also linked to popular heritage, especially Qatari designs passed down through generations.
Gold dealers in Qatar wait for the Ramadan season to display their new designs, according to Executive Director of Al-Salahi Holding Group, Mohamed al-Salahi, who said that the gold market is currently witnessing a great recovery, as the rates of sales increase since the first day of Ramadan range from 40-50%.
In a statement to QNA, al-Salahi said that “gold is still the best gift that is presented so far, and Qatari families are keen to acquire gold and also exchange gifts of gold, because of its high value, as it retains its value in most cases even if markets have been volatile.”
Al-Salahi indicated that most of the buyers in the market currently are Qataris, who prefer traditional gold jewellery.
“With the approaching night of Garangao in the middle of the holy month, sales rise above these percentages, due to the high demand for gold, handicrafts, and designs related to heritage and traditions, as families and relatives exchange gifts, and gold is the best gift on such occasions,” he added.
On the other hand, al-Salahi commented on gold prices and linked them to economic and political factors, saying: “It is known that gold prices rise with political crises and economic fluctuations to levels of $1,634 an ounce, due to economic data indicating a recovery in the US economy, and thus a rise in the dollar strength index, as well as a rise in the yield on US Treasury bonds on the one hand, and interest rate hikes on the other hand.”
He added: “In the current year, gold prices range between levels of $1800-2000 per ounce, and the inflation factor plays the most prominent role in the fluctuation of its prices between those levels, but after some US banks declared bankruptcy in recent weeks, gold prices jumped above the ceiling of $2,000 per ounce. It has been indeed a safe-haven currency during global financial market turmoil.”
With regard to gold price expectations for the coming period, al-Salahi said the price is expected not to exceed $ 2,080 per ounce unless there are major developments or new bankruptcies, indicating that predictions of a significant rise in gold prices are nothing but misleading propaganda. (QNA)
