The decline in gold comes amid a softening in other precious metals as well, with silver recorded at USD 48.20 per ounce, down 1.02 percent, and platinum at USD 1,563.02 per ounce, down 0.82 percent over the same period.
Market analysts attribute the subdued performance of gold in Qatar to a firming US dollar and cautious investor sentiment, which have tempered inflows into safe-haven assets. Globally, the metal continues to trade under pressure from rising real yields and expectations of further interest-rate tightening, particularly in the US.
Within Qatar, the oversight bank’s role in releasing these figures spotlights the domestic market’s sensitivity to global headwinds. Given the country’s fixed currency peg to the US dollar, any shift in the greenback’s strength tends to affect local bullion pricing directly.
Jewellery retailers in Doha have reported mixed outcomes amid the slide. Some noted that consumer appetite held reasonably steady despite the marginal drop, while others expressed concern that the slight decline may signal a broader hesitation among buyers. One jeweller remarked that buying patterns remain “cautious, with many customers waiting for a clearer direction”.
Regional trading dynamics also weigh on the local gold price. With Gulf-area import duties and stock-holding costs remaining relatively stable, the downward pressure appears driven more by external forces than domestic cost shifts. Some traders pointed out that global bullion stockpiles and declining futures premiums are adding to the dampened tone.
Longer-term fundamentals for gold remain mixed. On one side, geopolitical tensions and inflation expectations continue to underpin its safe-haven appeal; on the other, rising real interest rates and strong equity markets are diverting investor funds away from bullion. According to industry research, central-bank buying remains a key support factor, but private-investor demand in Middle Eastern markets has softened in recent months.
Local investors in Qatar are unlikely to see dramatic movements in the near term unless there is a destabilising external event or a marked shift in US monetary policy. Some commentary suggests that unless inflation spikes or growth stalls unexpectedly, gold may trade in a narrow range for some time.
Traders caution that the current decline of 0.40 percent could be the beginning of a broader correction if global conditions worsen. They highlight that in past episodes, a sustained rise in the US dollar or an unexpected policy decision has triggered sharper drops in gold pricing.
Topics
Qatar