Hassan Al-Sitri
In a volatile investment scene, gold has returned to the forefront of the world after a dramatic decline of more than 6% over the past few days, despite the historical highs it has recorded since the beginning of 2025, with the ounce exceeding the $4,300 barrier for the first time, while observers expected prices to return to rising with the opening of the stock market at one in the morning tomorrow, Monday.
Observers and experts told Al-Watan that this unprecedented fluctuation did not weaken investor confidence, but rather increased the tendency of individuals and institutions towards the precious metal as a safe haven in light of intensifying fears of global inflation, weak currencies, and worsening geopolitical tensions.
They agreed that the recent decline is only a temporary correction station, and that the general trend of the yellow metal is still upward and supported by a number of economic and political factors.
Najeeb Al-Haiki from Mayar Jewelry expected gold prices to rise again in the future, supported by several factors such as the continued government closure in the United States, which will lead to a decline in the dollar and thus a rise in gold.
Regarding the decline in gold prices over the past few days, he considered it a result of profit-taking and a previous rise that exceeded expectations, adding that the current conditions are not conducive for prices to continue to fall in this way, as the decline is linked to a natural correction after noticeable gains.
Al-Haiki said: “As long as the government closure is in place, prices will rise, and if this problem is resolved, gold prices may witness a slight decline.”
He pointed out that the expected weakness of the dollar due to the expected interest rate cut at the end of the month, in addition to geopolitical developments in the region, most notably the Russian-Ukrainian war, are all factors that enhance the continued rise in gold prices.
Regarding Chinese gold, Al-Haiki said: “It has caused a stir in some regions, but it is not widely spread in the Gulf Cooperation Council region or Bahrain yet,” explaining that there are an almost insignificant minority in Bahrain who are interested in Chinese gold, and their interest is not to buy it, but rather to ask about the difference between Chinese gold and traditional gold.
He explained that the main difference between them lies in strength and hardness, as it is harder than regular gold, but it is still not strongly present in the Bahraini market.
As for gold trader Nawaf Saeed, he said: “Gold prices witnessed an expected correction in the middle of last week, as they decreased temporarily before rising again at the end of it, and it is expected that the picture will become clearer during the next day.”
Saeed suggested that gold may continue to rise, pointing out that in the long term, there is a consensus that gold will continue in the upward trend.
He continued, saying: “Geopolitical events play a major role in influencing gold prices. Even as conditions improve, gold remains likely to rise, despite the difficulty of predicting its movement in the short term,” he explained, explaining that the high demand prompted some banks to expect that gold may reach $5,000 per ounce.
He added that gold prices have risen by more than 50% from the beginning of this year until now, while they have increased by more than 30% during the last two months, indicating that many young people invest in gold and keep it as assets on an annual basis. But with current conditions, investing in gold may be considered a calculated risk, especially for short-term speculation.
Saeed recommended saving in the long term, as the current time is the most appropriate to preserve gains during periods of instability, as price fluctuations may occur due to economic and political factors such as government closures, but they tend to stabilize over time, even in the event of a temporary price correction. Expectations generally indicate a continuous rise for gold in the long term.
Meanwhile, trader Ali Al-Sayegh pointed to expectations of a return to rising gold prices, and said: “The decline witnessed last week was expected, as it represents a short break before prices rise again.”
He continued, saying: “It is assumed that clearer features of the market movement will appear when the stock exchange opens tomorrow, Monday, at 1 am.”
