Muhammad Al-Abdullah
DAMMAM — Investors in the gold sector expect gold sales during the current Eid Al-Fitr season to be on the low side, or to a great extent similar to the past season.
They said that indicators do not show that there is an unusual trend to revive the gold sector in the Eastern Province amid the receding values of contracts with gold factories and workshops, which have not crossed the 25 percent barrier.
They said the gold sector is facing great difficulties as a result of the fluctuations the international bourses are facing due to the political and economic turmoil in the Arab world and the European continent.
Abdullatif Al-Nasser, an investor, said the wedding season during the current summer is similar to the previous season with regard to the quiet performance. There was slight and partial activity in the gold sector during the second half of Ramadan.
Al-Nasser said: “During the beginning of last Ramadan, there was a flurry of activity in other sectors, like food and supplies. This was contrary to the contract values with gold factories and workshops to purchase the latest models of gold ornaments. This decreased tremendously and did not exceed 25 percent of the total purchases during the past years.”
Meanwhile, Ali Al-Dijani, an investor, said Eid Al-Fitr, which was considered to be among the most important seasons for the gold sector during the past years has receded greatly during the past three years. All the indicators do not show that there will be an unusual trend to revive the gold sector in the Eastern Province.
He said the gold sector, similar to the other economic sectors, is facing great difficulties. The recession did not affect gold sales only, but the majority of the economic sectors, following the drop in purchasing power compared to previous years.
Abdulghani Al-Mhanna, chairman of the wrought gold committee in Asharqiya Chamber of Commerce said that the gold trends in the international bourses are related to the ongoing political and economic turmoil. The world markets are monitoring the developments in many countries.
Al-Mhanna said that conflicts are escalating in several countries whether in the Arab world or the European continent. This has a direct impact on gold dealings. Reaching political solutions enables the restoration of calm in the hot spots and it will create a better atmosphere in the world gold bourses.
However, the continuation of crises causes continuous concern in the international bourses. The political factors are the most important aspect in the turbulence in the markets. Meanwhile, speculations is another factor contributing to the rise and fall in the prices of precious metals in the world markets.
