Staff at a Malabar Gold & Diamonds outlet attend to customers. PICTURE: Peter Alagos.
By Peter Alagos
Business Reporter
Barely a week after gold prices dropped to around QR135 for a gram during the Eid holidays, the price of the yellow metal plunged further on Sunday to a record low of QR125 for 22 carat gold.
According to Malabar Gold & Diamond assistant manager Sathique Mohamed, gold prices had fallen to a record low of QR131 in 2013 but the present plunge has taken everybody by surprise.
“In the last five years, this is the first time that gold prices have plunged to QR125. This is the first time I have experienced such a drop in the price of gold,” Mohamed told Gulf Times on Sunday.
Mohamed said that In 2012, one gram of 22 carat gold was sold at QR203 but fluctuations in the international market drove prices down and to a record low of QR131 in 2013.
“Last month, one gram of 24 carat gold was sold between QR143 and QR146,” he added.
But according to Atlas Jewellery regional manager Biju Ramachandran, the price of gold would bounce back next month from the current QR127 (Atlas price) for every gram of 22 carat gold to the QR135 -QR140 range.
“The price of gold is mostly dictated by prices in the international market. Currently, an ounce of gold is traded at $1,100 in the international market,” Ramachandran said.
He added: “As of yesterday (July 25), there was a $23 difference in the morning and evening prices. Trading started at $1,077 per ounce and the price rose to $1,100 before the market closed.”
While gold prices dropped just days before the Eid holidays ended, Malabar Gold & Diamond had recorded “good sales,” particularly for gold jewellery, Mohamed said.
This was corroborated by Atlas shop manager Nijas VV, who said earlier that the high demand for gold and gold jewellery was driven mainly by Asian expatriates leaving Qatar for their annual vacation, which is around June and July.
“For these expatriates, mostly Indians and Pakistanis, this is the best time to buy gold and jewellery, which they take home as gifts for their families, relatives, and friends,” Nijas said.
Mohamed also said gold sales are expected to increase in November as many Indians celebrate the Diwali festival, which is believed to be an auspicious time to buy gold.
“Demand for gold is high during the Akshaya Tritiya (in spring) and Diwali (in autumn) festivals, which usually brings a 15% to 20% increase in our store sales,” Mohamed said.
Apart from buying gold jewellery, a large number of people, particularly those from the Indian subcontinent, buy the yellow metal as a secure means of investment.
