Low gold prices have
boosted sales in Saudi markets despite recent global fluctuations in its value.
Riyadh and Makkah registered the highest levels of sales in this regard,
followed by the Eastern Province and Madinah.
The price of the yellow
metal has registered continuous decline in world markets throughout recent
weeks. While the value of gold may have increased by one percent during the
Christmas week, much of these gains were countered by the lack of cash for gold
available within the market in the post-Christmas period. As such, the value of
gold is now declining for the sixth consecutive week, making this the biggest
period of decline since the 1970s.
The price drops in gold
increased buying among the Gulf countries, especially in the UAE and Saudi
Arabia. Saudi jewelers commented that during the first ten days of this year,
there were more buyers of gold than was initially expected, thus exceeding
Jeweler Ali Zakaria said
that such price drops encourage buying despite the fact that no one knows what
price the gold is going to reach at its lowest point. This may mean that their
gold will be worth a considerable amount of money, leading many to buy gold in
the hope that the price will increase again, enabling them to make money