Ramadan drives gold demand in Qatar despite rising prices
The holy month of Ramadan continues to be a crucial period for Qatar’s gold market, with demand rising despite an increase in gold prices. Gold remains an integral part of Qatari society, valued both as a secure investment and as a significant cultural tradition. Gifting gold during Ramadan is a deeply rooted practice, strengthening social and familial ties.
As reported in Qatar Tribune, gold prices have been on an upward trajectory, reaching record levels in 2024. Over the past decade, the price of gold has increased from approximately $1,000 (QR3,650) per ounce to over $2,600 (QR9,490). The current trend suggests a continued rise, although fluctuations are expected due to global economic and geopolitical factors.
Gold merchants in Qatar, speaking to Qatar News Agency (QNA), acknowledged that despite the rising costs, Ramadan remains a season of heightened activity in the gold market. Retailers have introduced both traditional and contemporary designs to cater to varying consumer preferences. Gold’s appeal as both an investment asset and a safeguard against economic uncertainty continues to drive demand.
Abu Tamim Al Awlaqi noted that the price of 21-karat gold has risen from QR209 at the beginning of 2024 to QR286 by the end of the year and QR300 at present. Despite this increase, he expects strong demand throughout Ramadan. He attributed this to gold’s enduring significance as a store of value, particularly in uncertain economic conditions.
Al Awlaqi also observed that demand typically spikes in the first half of Ramadan, driven by traditional gift-giving customs. He noted differences in consumer preferences, with Qatari buyers favouring heritage jewellery, while expatriates and visitors often opt for Bahraini and Kuwaiti designs, as well as pure gold pieces.
Similarly, Abdulqawi Al Afifi described the recent price surge as sharp, noting that it has led to some reluctance among expatriate buyers. However, he anticipates a rebound in demand as Ramadan progresses and Eid Al Fitr approaches, historically a period of increased gold purchases. Al Afifi cited high inflation and regional geopolitical tensions as key factors influencing gold demand and price volatility. He also pointed to US Federal Reserve interest rate hikes as contributing to market fluctuations.
Mohamed Salah Mohamed Al Salahi attributed the steady rise in gold prices in 2024 to geopolitical instability and economic pressures. He noted that prices have increased from approximately $1,800 per ounce at the start of the year to around $2,800. He projected that prices could exceed $3,000–3,300 per ounce over the next two months, potentially driving the price of 24-karat gold to QR370 per gram, up from the current QR327.
A report by Qatar National Bank (QNB) in February 2024 reaffirmed gold’s status as a preferred alternative investment. The report highlighted gold’s role as a hedge against inflation, noting that global monetary easing has further enhanced its appeal. These factors continue to reinforce gold’s position as a safe-haven asset in times of economic uncertainty.
Source: https://retailjewellerme.com/