Manama: Bahrain’s local market reported an increase in gold prices yesterday as they soared globally.
Gold was selling at BD14.63 per gram for 24 carat, BD13.41 for 22 carat, BD12.80 for 21 carat and BD10.98 for 18 carat. An ounce of gold is now worth $544 up from $447.76.
Economic expert Dr Jaffar Al Saegh said the US political situation and expectations that President Donald Trump could face trial for violating election campaign finance laws, tax evasion and banking fraud will have negative impact on US economy.
“Investors dealing in US dollar started taking preventive measures as they have become increasingly pessimistic about the future,” Mr Saegh said. “They are turning towards more secure investment opportunities, namely gold, which has led to an increase in prices of the precious metal and a drop in US dollar rate. This will, in future, reflect on share prices.”
US political uncertainty, heightened by the legal woes of two of US President Donald Trump’s former advisers this week, is keeping the dollar under pressure despite tighter US monetary policy, analysts say. A weaker US currency makes dollar-denominated gold cheaper for holders of other currencies, which could boost demand and prices, reports Reuters.