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Sat 26 Sep 2009 11:03 AM

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Qatar gold demand down after Eid despite price fall

Gold rates in Doha market had come down to of $32 on Friday post Eid.

Qatar gold demand down after Eid despite price fall
GOLD VIEW: Ratings agency Fitch expects prices to remain range bound in the short-term.(Getty Images)

Now that the festive season is over, the demand for gold products like jewellery, coins and bars has come down considerably, according to a report.

The Peninsula daily reported that outlets selling gold jewellery and 24-carat gold coins and bars in Doha said that the prices of gold had soared up to around $41 per gram (24-carat) during the festive season.

The Qatar-based newspaper added that the rates in Doha's local market on Friday had come down to of $32 post-Eid Al Fitr.

An official from Al Fardan Exchange told The Peninsula that: "It's an irony that while the prices of gold peaked at historic highs during the festive season the demand was much higher, but when the rates have dropped more than 15 percent now, there is hardly any demand."

Earlier this month, ratings agency Fitch said that whilst the gold price remains near historic highs due to 'flight to quality' led investor demand, it expects prices to remain range bound in the short-term.

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