Investment gold gains fancy among Asians as the price of this metal falls, said a market maker. Stejin, General Manager of Chemannur Jewellers told the Bahrain New Agency (BNA) that the price of gold was fluctuating at the lower levels at $1,700 per ounce to $1,600 per ounce, Bahrain News Agency reported.
In the local market this trend has a positive sentiment, he added. In Bahrain the morning price is BD19.400 per gram in 22 carat and BD21.2 in 24 carat, said the general manager.
"We are seeing good purchase, with more and more people turning their funds into gold," he added. In the jewellery gold category there is a jump of 25 to 30 per cent, which could be seen as good, said Stejin.
However, the real buying flavor is in investment gold he said. Overall there is 60 per cent to 80 per cent buying in this category, said the general
manager.
The areas of interest to the buyer are the eight gram coins and the medium biscuits, he said. There is enquiry for the 50 gram and the 100 gram biscuits, which is a positive trend, he added. "Not only are there enquiries, some of these are also turning to firm orders and that is
fascinating, since enquiry for these products had ceased with the prices booming, said Stejin.
Profit-taking in the international markets and the move to the dollar with that currency appreciating could be seen as reasons, he said.
Asked for the correction at the bottom, Stejin said, "The lowest I see is $1550 per ounce and in the Bahrain market it could be BD19."
Echoing similar trend in the bottoming of the price was Mohammed Abdullah,
Director of Malabar Gold in Bahrain.
The falling prices are a result of dollar gaining fancy and the oil and real estate prices in the international market slipping in both India and China, he said.
Bahrain is seen investing in gold at this juncture and that is a healthy trend for the economy, he added. A fall in the US financial sector is also
pulling gold down, said Abdullah.
Turning to the buying trend in Bahrain, he said, Indians generally are seen looking for the eight gram coins and then to the 50 gram and 100 gram biscuits, for which enquiries are showing a positive trend. However, not much can be done on this because the commodity is scarce in the local market, he added.
As for the Bahrainis the flavor is in the 24 carat gold investments, said the director.
In the immediate trend the market is expected to slip to $1,600 per ounce in the international market and the bottoming out would be at $1,550 per ounce, he added echoing similar sentiment as Steji.