Midel East, gold prices yesterday fell to their lowest level two times in almost a month, shopping has increased at gold shops through the Kingdom.
The approaching marriage season in India and Saudi Arabia is what motivated customers for the rush on gold shops, also the drop in gold prices.
Gold traders are expecting that demand will upsurge as buyers decided to wait for more decrease in the next few days.
The stable USD affected as holdings in exchange-trade funds dropped to the lowest in more than four years, spot gold also dropped to as low as 1,360.55 an ounce yesterday, its lowest since April 18 when gold sold at 1,335 an ounce. Nevertheless, analysts expect that gold is still attractive to traders and that in spite of recent price differences.
In Jeddah, the gold price of 22k fell to SR 154 per gram yesterday, decline by SR 4 from SR 158. Yet, the price differs amid shops with a change of SR 2 per gram for 22k gold.
Disparate the last fall in April, as most sales were mostly narrowed to 22k, as for this time, the sales of 21k have also become common, as most Arab emigrants and Saudis buy the yellow metal not only for weddings, where it is traditionally used to accessorize the bride, but as well because it is deliberated as a safe investment. Gold preferences differ. Whereas Indians have a preference of 22k ornaments, Saudi and Arab emigrants prefer 21k gold.
Gold shops have been experiencing up to a 100% increase in sales for the last few days, said by
Vijayan, the sales manager at Atlas Jewelry in Jeddah.
“Saudi gold market is witnessing an increased rush almost after five years. It bodes well for Saudi traders that there is an increase in the demand for 21k gold.” stated by gold trader Ziyad Farsi.
The latest round of reductions in gold prices came as the World Gold Council reported that the global demand for gold had dropped 13% in the first quarter as a result of a large amount of liquidation in exchange-traded funds, as demand for gold in the form of ornaments had increased by 12%.
The WGC reported yesterday “Jewelry demand across the Middle Eastern and Indian markets experienced a revival in the first quarter,”
Putting aside the losses, some investors have suffered, the latest fall in prices has showed to be a bang for gold traders who are experiencing an improved rush in gold sales.