DOHA: Qataris are indifferent to fluctuations in gold prices when it comes to buying the yellow metal.
According to traders, the recent rise in the prices did not have significant impact on sale as demand for gold is still strong, Al Raya reports.
The prices have increased in the past week due to international factors. Prices went up by QR5 per gramme and 21 carat gold is trading at around QR120-127 per gramme.
The recent rise in the prices is in contrast to the declining trend in the past two years.
Abdur Rahman, a gold trader, said sale has increased despite the recent rise in prices and that there is strong demand from Qataris.
Gold traders say after Qataris, other Arab nationals are the second biggest buyers followed by Asians. Among Arabs, Sudanees are the top buyers while Indians top the list among Asians.
Asians are sensitive to price movements. They buy gold when prices fall and stay away from the market when prices rise.
According to traders, Qataris mostly buy gold jewellery in traditional designs.
Qassim Al Yafei, Director, Qatar Jewellery, said price fluctuations deter customers, mostly Asians, from buying gold.
Gold has seen volatility in the past two years. The prices have been falling consistently since 2012 due to international factors.
After touching the peak in the second half of 2011, the prices of 24 carat gold showed some sign of moderation and hovered in the range of QR180 to QR200 until September 2012.
It went up to QR210 again in October 2012 but started declining since then, a trend still continuing.
The prices in Qatar are linked to international markets, mainly the London bullion market.
After enjoying a bull-run until 2012, the prices have started falling since expectation of recovery in the US economy.
The US economy has started showing signs of revival which is likely to prompt its central bank to raise interest rates.
The prospects of rising interest rates and strengthening of the dollar have dented demand for gold. Instead of buying gold, global investors have started buying US bonds and dollar.
The Peninsula
