Eid festivities boost sales of gold jewellery

Festive mood during Eid Al Fitr has pushed up gold sales in the country. Showrooms witnessed up to 30 percent rise in sales of gold jewellery, helped by attractive offers launched by gold retailers.

High prices of gold could not dent customers love for the yellow metal as most of the retailers witnessed brisk business. Gold prices are around 14 percent higher than last year, as a gram of 22 carat gold was trading yesterday at QR150 while one gram of gold of same purity was available for QR132 in January last year.

“There was a huge rush to buy jewellery on the first day of Eid Al Fitr and sales jumped by 30 percent compared to other days. It is an annual trend in Qatar and jewellery sales is usually high during Eid,” a senior official of a gold showroom told The Peninsula. “Most of the customers were Asian expatriates,” he said.

Expatriates prefer to buy gold jewellery from Qatar before going on vacation because of the quality of gold available here. Expatriates buy jewellery from here as gold available here is of best quality.

“I want to gift my wife and daughter gold jewellery this time. Prices of gold are comparatively lower here in Qatar compared to my home country and there is no doubt about the quality of gold available here,” an Asian expatriate said.

Many gold retailers have launched offers and discounts on gold jewellery to attract customers. The offers include zero making charge on jewellery, cash back, lucky draws, zero deduction on old gold exchange etc. The demand for gold bars, which is mostly bought for investment purpose was comparatively dull and high prices of yellow metal were blamed for this.

“The demand for gold bars is inversely related to gold prices. Sales of gold bars rise when prices are low and demand falls when prices are high,” said a sales manager of a jewellery showroom at gold souq.

In the remaining part of 2018, the trend in gold prices will depend on the movement in the value of dollar and interest rates in the US.

A weaker dollar fuels demand for gold by making it cheaper for holders of other currencies, while lower bond yields reduce the opportunity cost of owning non-yielding bullion. Gold is highly sensitive to the rising interest rates because they push up bond yields and tend to boost the dollar.

Courtesy: The Peninsula/ Image: investing.com