JEDDAH: Due to the summer vacation together with the month of Ramadan, gold markets in Saudi Arabia have revived.
Gold dealers have confirmed that the surge in sales has been recorded at 60 percent more than that of last year, and will continue until after the Haj season due to marriage ceremonies in most areas of the country.
The highest of such revivals will be witnessed by Makkah and Madinah because of the rise in Umrah visitors during the holy month of Ramadan. The gold price in Saudi Arabia for 24 carats was SR150.07 last week; for 22 carats, the price stood at SR137.56; 21 carats at SR131.31; and 18 carats at SR112.55.
Ali Al-Baqshi, a gold dealer, said that the prices of gold will witness a slight rise and drop, not exceeding 50 riyals. “Gold dealers do not expect drastic rises or drops during the coming period which keeps gold prices in an affordable range. In addition, we do not expect big surprises on the global level, not in the near future at least,” he added.
Nonetheless, he confirmed, Saudi markets have not yet witnessed the full revival which would bring the markets back to their level in the middle of the last decade. He noted that the prices at the global level are fluctuating at present, which is typical of the rare yellow metal, however they are unlikely to fall or rise sharply during the coming period.
“During the last week, trading in gold did not change much, perhaps only by about four dollars. During times of acute volatility, the changes are higher or lower than 100 dollars during each session,” he explained.
He added that the low levels of risks surrounding the global economy and the return of interest rates to pre-crisis levels makes keeping savings in the revenue-generating range economically infeasible. “When the inflationary expectations among investors fade away, especially those linked to the US dollar, markets will recover,” he said.
Mohammad Bokhamsin, another gold dealer, said gold prices are encouraging. “Buyers are convinced now that the current prices are at the normal levels and will not fall further any time soon,” he said.
Another dealer, Hasan Al-Nimr, said that the high spikes in gold prices during the past few years have lowered the ability and willingness of dealers and consumers to buy for the last two years, however, he said that the situation is improving.
“We can see this trend through the transactions being made with used gold. The proportion of customers selling used gold did not exceed 15 percent last year, with sales of used gold amounting to only 20 percent compared to its peak of 100 percent in the past. Our purchases of used gold used to reach 3 kilo a day, now it is only 300 or 400 grams per day,” he said.
The wedding season, he said, will revive gold sales all across the Kingdom, in addition to the Umrah season, which will revive gold sales in Makkah and Madinah.
Gold dealers have confirmed that the surge in sales has been recorded at 60 percent more than that of last year, and will continue until after the Haj season due to marriage ceremonies in most areas of the country.
The highest of such revivals will be witnessed by Makkah and Madinah because of the rise in Umrah visitors during the holy month of Ramadan. The gold price in Saudi Arabia for 24 carats was SR150.07 last week; for 22 carats, the price stood at SR137.56; 21 carats at SR131.31; and 18 carats at SR112.55.
Ali Al-Baqshi, a gold dealer, said that the prices of gold will witness a slight rise and drop, not exceeding 50 riyals. “Gold dealers do not expect drastic rises or drops during the coming period which keeps gold prices in an affordable range. In addition, we do not expect big surprises on the global level, not in the near future at least,” he added.
Nonetheless, he confirmed, Saudi markets have not yet witnessed the full revival which would bring the markets back to their level in the middle of the last decade. He noted that the prices at the global level are fluctuating at present, which is typical of the rare yellow metal, however they are unlikely to fall or rise sharply during the coming period.
“During the last week, trading in gold did not change much, perhaps only by about four dollars. During times of acute volatility, the changes are higher or lower than 100 dollars during each session,” he explained.
He added that the low levels of risks surrounding the global economy and the return of interest rates to pre-crisis levels makes keeping savings in the revenue-generating range economically infeasible. “When the inflationary expectations among investors fade away, especially those linked to the US dollar, markets will recover,” he said.
Mohammad Bokhamsin, another gold dealer, said gold prices are encouraging. “Buyers are convinced now that the current prices are at the normal levels and will not fall further any time soon,” he said.
Another dealer, Hasan Al-Nimr, said that the high spikes in gold prices during the past few years have lowered the ability and willingness of dealers and consumers to buy for the last two years, however, he said that the situation is improving.
“We can see this trend through the transactions being made with used gold. The proportion of customers selling used gold did not exceed 15 percent last year, with sales of used gold amounting to only 20 percent compared to its peak of 100 percent in the past. Our purchases of used gold used to reach 3 kilo a day, now it is only 300 or 400 grams per day,” he said.
The wedding season, he said, will revive gold sales all across the Kingdom, in addition to the Umrah season, which will revive gold sales in Makkah and Madinah.
