BUYERS in Bahrain have not been deterred despite the price of gold hitting a record high of more than $4,000 an ounce yesterday, according to dealers.
The rate for 24 karat gold was BD49.6 per gramme yesterday, while 22k was selling for BD46.4 per gramme. During the same period last year, 24k was about BD36 per gramme while 22k was BDD33 per gramme.
GCC Gold and Jewellery Association’s Bahrain chapter’s adviser Mohammed Mualim told the GDN yesterday that customers were now queuing up to buy bullion.
“The market is not moving as fast as it should because customers are buying gold bullion rather than new jewellery items,” he said.
“There are also customers who are selling their old jewellery to buy bullion.
“There is a strong indication that the price is expected to touch $5,000 an ounce and that is further driving interest in gold.”
Gold bullion is investment-grade gold, at least 99.5 per cent pure, in the form of bars, ingots or coins. It is a tangible, safe-haven asset used by investors and central banks to hedge against inflation and market risk.
The precious yellow metal has climbed two-fold over the last three years as investors have sought safety amid Europe’s biggest conflict after the Second World War, the Ukraine-Russia conflict, the war in Gaza and disruptions to maritime trade.
Joyalukkas regional manager Sandeep Menon said it was a good time to buy gold because the price is bound to go up further. “Overall, if we analyse the market now, despite the high price, we are seeing growth with customers buying jewellery or bullion.
“Customers, including Bahrainis, are inclined to invest in 24k gold bullion bars, but there is still a rush of customers to purchase gold jewellery ahead of the Diwali festival.”
Bahraini gold is known for its high purity. It is available in various karats including 24k, 22k, 21k, 18k and 14k.
Out of all the options, 24k gold is considered the purest, with a fineness of 99.9pc.
The kingdom has a system where all gold items are tested and hallmarked before being sold, ensuring they meet the purity standards.
There is a strong demand for Bahraini gold, particularly among GCC customers.
Indian festivals of Dhanteras and Diwali in the coming weeks are also expected to boost gold demand in Bahrain.
Dhanteras is one of the busiest and auspicious gold-buying days in India.
“In recent days we’ve seen an unprecedented surge in gold, driven by investor demand and expectations of further gains,” said Bullion Trading Centre chief executive Hassan Nassar, who has offices in Bahrain and Dubai.
“A series of unexpected global developments has reinforced the metal’s safe-haven appeal, while prospects of interest-rate cuts and other factors have added momentum, with a 53pc year-to-date jump.”
He said his company was moving with agility in line with the yellow metal’s price movements while doubling down on originality.
“We’re bringing authentic designs inspired by Bahraini culture,” he noted.
Gold zooms past $4,000 – Page 16
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