| Publish Date: Friday,27 June, 2008, at 01:16 AM Doha Time |
AN increase in the price of yellow metal in the last two days does not seem to have deterred buyers as local jewellers have seen “brisk” sales for finished jewellery as well as gold coins and biscuits.
Some jewellers said they were meeting the demand with extra supplies from Dubai, the region’s largest gold market.
Traditionally, gold sales become brisk from mid-June until the first week of August, which industry sources termed as the “peak summer season”.
Local jewellers expect large volumes of business as many people purchase gold when they go on vacation.
Besides finished jewellery, gold coins, biscuits and bars are also in demand in the local market, inquiries reveal.
Doha-based jewellers source these mostly from Dubai and get fresh stocks from the emirate every fortnight.
A jeweller said he had to fly to Dubai last week to secure extra supplies in view of the great demand for gold biscuits (tola bar), coins and finished jewellery.
“Normally, I bring about 10kg of gold from Dubai each time. But last week I secured more quantities because of committed orders from customers. The local authorities, including the customs and municipality, are also very supportive. They are going through all the required processes in time,” he said.
Although there is no sharp difference in gold price between markets, the Gulf region is still considered a preferred shopping place because of the “guarantee on quality,” said AV Joju, manager at Joyalukkas Jewellery at Shara Kahraba.
Yesterday, 22-carat gold closed at QR101.50 per gram. The price of 24-carat gold was QR107/gm yesterday.
Local jewellers were selling gold at QR98 per gram for 22-carat and QR104 for 24 carat on Wednesday.
Gold closed at QR12,450 for 10 tolas (116gm) yesterday. On Wednesday 10 tolas had gone for QR12,100.
According to Reuters, gold price surge was because of the dollar weakening after the US Federal Reserve decision to hold interest rates steady.
Gold in particular reacted sharply to the US currency’s fall, jumping more than 3%, the agency said. A weaker dollar gives holders of other currencies greater purchasing power over metals which are priced in dollars.
“It’s a dollar story,” said Sean Corrigan, chief investment strategist at Diapason Commodities Management. “For now the impetus towards an improving dollar...has faded a bit,” he added.
In the last two years, gold prices in the international market have more than doubled; causing a sharp decline in the yellow metal’s retail business. This was due to a combination of factors, including surging crude oil price, skirmishes in many regions, declining bank interest rates and bearish run in capital markets worldwide.
The recent depreciation of Indian rupee against the dollar was benefitting gold trade within the country, an analyst said. India is the world’s largest consumer of gold.
Many see in gold a safe haven for investment. Some investors seem to believe the gold price may not fall drastically even if there is some price adjustment over a period of time.
| Back to Article | Homepage |