Doha: The holy month of Ramadan is a peak season for Qatar’s gold market, as demand for the precious metal surges both as an investment and savings vehicle, as well as a cherished cultural tradition. Gold remains a symbol of heritage in Qatari society, with gifts of the yellow metal reinforcing deep-rooted social ties.
According to Qatar News Agency, this year, Ramadan coincides with a period of sustained gold price increases in Qatar, a trend that has persisted for years due to multiple factors, including global inflation, international monetary policies, and local demand. In 2024, gold prices reached record highs, climbing from approximately USD 1,000 (QR 3,650) per ounce a decade ago to an average of more than USD 2,600 (QR 9,490). While the upward trend is expected to continue, albeit at a slower pace, fluctuations remain likely due to global economic and geopolitical developments.
Gold merchants in Qatar told QNA that despite these factors, Ramadan remains a season of revitalization for the gold market. New and traditional jewelry designs are introduced to cater to diverse customer preferences, with expectations of continued strong demand, driven by gold’s dual role as both an investment asset and a safe haven amid global economic uncertainty.
Speaking to QNA, Abu Tamim Al Awlaqi noted that despite the rise in 21-karat gold prices from around QR 209 at the start of 2024 to QR 286 by year-end and QR 300 at present, demand is expected to remain strong throughout Ramadan. He attributed this to gold’s investment appeal and cultural significance, making it a preferred asset in times of economic uncertainty.
Al Awlaqi also highlighted that local demand spikes during Ramadan, driven by traditional gift-giving customs, which often leads to price increases, especially in the first half of the month. Regarding consumer preferences, he noted that Qatari buyers tend to favor heritage jewelry, while expatriates and visitors prefer Bahraini and Kuwaiti sets, as well as pure gold pieces.
Similarly, Abdulqawi Al Afifi described the recent surge in gold prices as sharp, stating that it has negatively impacted sales, with some customers, particularly expatriates, hesitating to buy. However, he remained optimistic that demand would rebound as Ramadan and Eid Al-Fitr approach, typically leading to a temporary uptick in prices.
Al Afifi pointed to high inflation and ongoing tensions in the Middle East as key factors affecting gold demand. He also cited pressure on interest rates, noting that monetary policies, especially the US Federal Reserve’s interest rate hikes, have contributed to price volatility.
For his part, Mohamed Salah Mohamed Al Salahi attributed last year’s significant gold price surge to geopolitical tensions, including wars and global economic pressures. Unlike previous years, which saw price fluctuations, 2024 witnessed a sharp and continuous increase, with prices rising from approximately USD 1,800 per ounce at the start of the year to around USD 2,800 currently.
Al Salahi projected that this upward trend could persist over the next two months, potentially pushing gold prices beyond the USD 3,000-3,300 per ounce range. This could drive the price of 24-karat gold to around QR 370 per gram, compared to the current QR 327.
A recent report by Qatar National Bank (QNB), issued in February 2024, reaffirmed gold’s position as a leading alternative investment. The report highlighted gold’s proven role as a hedge against inflation, with global monetary easing further bolstering its appeal. These factors reinforce gold’s status as a safe haven for investors amid economic uncertainties.