Jewellery buyers remain cautious amid growing uncertainty over the outcome of continued tensions between the US and Iran, whose retaliation on Wednesday to a US drone strike earlier caused a surge in gold prices.
“The initial shock could hold people back, but then they will get used to the rates and will start purchasing again because gold is also seen as an investment…even if prices are up and people buy gold, they can hold on to it for longer periods and still sell at a higher price,” Shine Gold & Diamonds marketing head – Gulf Region Sameer Adam told Gulf Times yesterday.
He also said: “Because of the sudden surge in gold prices, some people may hesitate for a few of days but business will gradually pick up again; and this is what the market has been experiencing in the past years.
Similarly, Malabar Gold & Diamonds regional head Santhosh TV said: “People are not buying gold because of the high prices, but this is just a temporary issue; gold prices will eventually come down, which is why people just are waiting for the right time.
“Once the market has stabilised then people will start buying again…but if there is prolonged fluctuation in gold prices, then that would impact business, he also pointed out.
After Iran fired rockets at an Iraqi airbase housing US military personnel yesterday, the price of gold surged more than 2%, breaching the $1,600 mark, driven by heavy investor buying.
According to Santhosh, the gold market has witnesses a steady upward trend in the past years. On Wednesday, a gram of 22 carat gold pegged at QR183.50, a QR10 increase compared to prices last month, he said.
“From June 2019, gold prices saw steady growth. In December during the school break, many expatriates, particularly Indians going on vacation, purchased gold, thus giving jewellery shops good business,” he explained.
Giving a forecast for 2020, Santhosh said the jewellery industry in Qatar would “benefit greatly” from the preparations for the upcoming 2022 FIFA World Cup, which is seen to attract thousands of tourists during the event.
Adam added: “I’m sure all jewellers in Qatar are preparing for this event; considering the high taxes on gold and jewellery in the US and other European countries, and comparing gold prices in Qatar, I am expecting many tourists to make gold and jewellery purchases here during the games.”
He also said: “Because of the sudden surge in gold prices, some people may hesitate for a few of days but business will gradually pick up again; and this is what the market has been experiencing in the past years.
Similarly, Malabar Gold & Diamonds regional head Santhosh TV said: “People are not buying gold because of the high prices, but this is just a temporary issue; gold prices will eventually come down, which is why people just are waiting for the right time.
“Once the market has stabilised then people will start buying again…but if there is prolonged fluctuation in gold prices, then that would impact business, he also pointed out.
After Iran fired rockets at an Iraqi airbase housing US military personnel yesterday, the price of gold surged more than 2%, breaching the $1,600 mark, driven by heavy investor buying.
According to Santhosh, the gold market has witnesses a steady upward trend in the past years. On Wednesday, a gram of 22 carat gold pegged at QR183.50, a QR10 increase compared to prices last month, he said.
“From June 2019, gold prices saw steady growth. In December during the school break, many expatriates, particularly Indians going on vacation, purchased gold, thus giving jewellery shops good business,” he explained.
Giving a forecast for 2020, Santhosh said the jewellery industry in Qatar would “benefit greatly” from the preparations for the upcoming 2022 FIFA World Cup, which is seen to attract thousands of tourists during the event.
Adam added: “I’m sure all jewellers in Qatar are preparing for this event; considering the high taxes on gold and jewellery in the US and other European countries, and comparing gold prices in Qatar, I am expecting many tourists to make gold and jewellery purchases here during the games.”
