Doha bank, the first lender authorised to import and sell gold in Qatar, took in 23,818 ounces in the first seven months of 2015 compared with 15,830 ounces in the same period last year
Bloomberg/Doha
Doha Bank expects to sell a record QR200mn ($55mn) of gold this year as consumers take advantage of lower prices and investors seek a haven from falling equities and weakening currencies.
The bank, the first lender authorised to import and sell gold in Qatar, took in 23,818 ounces in the first seven months of 2015 compared with 15,830 ounces in the same period last year, Samuel KV, head of treasury trading and product management, said in a phone interview from Doha on Sunday. Sales were worth QR110mn in the 2015 period, he said.
China’s stocks tumbled as much as 9% yesterday and Qatar’s benchmark index of shares slumped 1.7%. Brent oil below $45 for the first time since March 2009 raised concern about growth prospects in the Middle East. There is speculation the Federal Reserve will start to raise US interest rates in December instead of next month, reviving demand for gold because the delay makes the metal more competitive with assets that pay dividends or yields.
“Gold remains a solid bet for the future,” Samuel said. Demand is expected to rise due to the “big volatility in the Chinese stock market and currency” and the possibility of a delayed interest rate increase by the Fed.
Gold declined 0.5% to $1,154.55 an ounce in early trade yesterday after rallying 4.1% last week.
Low gold prices often trigger purchases of the precious metal in the Middle East and Asia, the World Gold Council said on August 13 when reporting that global gold demand slumped to a six-year low in the second quarter. Prices fell 10% in the past year, and traded at a five-year low of $1,077.40 an ounce in July.
Demand for gold jewellery in the Middle East declined 20% and investment bar and coin consumption dropped 37% in the second quarter, the World Gold Council said. It cited an increased value added tax in Iran, lower oil prices and currency weakness. Oil has retreated 23% this year.
