DOHA: There has been an unusual upswing in gold sales in the local market this Eid Al Adha as the festival almost immediately followed the Indian festival of lights (Diwali) when people prefer to buy gold and its ornaments.
This Eid, Qatari nationals bought more gold ornaments than usual, market sources said. Qatari women also prefer to buy gold jewellery during Eid Al Adha.
Market sources said that they estimate the rise in gold sales this season might not have been less than 35 to 40 percent as compared to the pre-festive months.
Meanwhile, gold prices rose slightly yesterday but the rates were overall lower than the record peak witnessed recently when one gram of pure (24-carat) gold was sold for QR167 plus.
The rate in the local market yesterday was QR159, bullion traders said. According to them, the demand for the yellow metal for investment purposes was stable.
"We have been observing this over a number of years that more investors turn to gold immediately as it becomes expensive," said an official from Al Fardan Exchange which also deals in the precious metal.
According to him, the demand for gold went up feverishly in the Qatari market when the prices suddenly zoomed beyond $1,400 per ounce recently. Currently, the rates rule at $1,352 per ounce.
The standard 116.64 gram gold biscuit was available for QR18,600 in the local market, according to this official. "There is more demand for gold coins and biscuits this Eid Al Adha," he said. Jewellery stores also reported brisk sales.
When told that people have been complaining of cash constraints due to at least the psychological impact of the global recession still lingering in their minds, Al Fardan Exchange official quipped: "But for such safe and lucrative investments people always have some savings."
© The Peninsula 2010
