Saudi- Fall in gold prices boosts trade in local market
(MENAFN- Arab News) JEDDAH: Buying and selling of gold has been on the rise because of the fall in its price up to 20 percent over the past six months according to traders in the local gold market.
However they noted that there has been a considerable decline in gold purchased by pilgrims because of the instability and high cost of Haj and Umrah in several Arab countries.
'The drop in gold prices is healthy for the market as it prompts people to buy more and more' said Sharif Ahmad of Fouad Al-Sharif Group. 'In recent years people used to buy one piece instead of two because of the high price level. But today with the lower prices the market has revived as people are buying golden gifts.'
The price of an ounce of gold fell nearly 20 percent over the past six months he said.
He said the growth in gold demand rises in the summer compared to other seasons by 40 to 50 percent.
He put the Libyans as the highest buyers of gold from the Kingdom followed by the Senegalese Nigerians Tunisians Egyptians and Malaysians.
Muhammad Azuz a former member of the gold committee at the Jeddah Chamber of Commerce and Industry said ordinary consumers have not benefited from the falling gold prices.
However they noted that there has been a considerable decline in gold purchased by pilgrims because of the instability and high cost of Haj and Umrah in several Arab countries.
'The drop in gold prices is healthy for the market as it prompts people to buy more and more' said Sharif Ahmad of Fouad Al-Sharif Group. 'In recent years people used to buy one piece instead of two because of the high price level. But today with the lower prices the market has revived as people are buying golden gifts.'
The price of an ounce of gold fell nearly 20 percent over the past six months he said.
He said the growth in gold demand rises in the summer compared to other seasons by 40 to 50 percent.
He put the Libyans as the highest buyers of gold from the Kingdom followed by the Senegalese Nigerians Tunisians Egyptians and Malaysians.
Muhammad Azuz a former member of the gold committee at the Jeddah Chamber of Commerce and Industry said ordinary consumers have not benefited from the falling gold prices.
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