KUWAIT CITY: Several gold experts and traders confirmed that the decline in gold prices in the global and local markets has cast a dark shadow on the local gold market and led to its stagnation, as consumers are waiting for further price declines and gold buyers prefer not to buy when prices decrease. These experts attributed the current decline in gold prices to several factors, most notably the victory of Donald Trump in the United States presidential elections; as he promised to ease tensions in Ukraine and Gaza, in addition to ruling out the outbreak of war between Israel and Iran. Gold trader Mohammad Hadi said the gold market has been going through recession for about a week now, especially after the decline in buying and selling transactions that harmed gold traders.

He disclosed that the price of a gram of 21-carat gold was KD23.397 on Nov 10 and then the price went down to KD22.392 on Saturday – a decline of about KD1. He added the price of a gram of 22-carat gold fell to KD23.467, compared to KD24.520 on Nov 10; while the price of a gram of 24-carat gold went down from KD26.736 to KD25.591, and 18-carat gold from KD20.54 to KD 19.193.

Another gold trader, Ali Al Hindi, stated that gold shops in the country are currently witnessing a decline in sales; because many consumers expect further price reduction in the coming period. At the same time, he advised consumers not to trust the price decline, as it may rise suddenly without warning. Abdullah Haddad, also a gold trader, revealed he does not prefer to buy gold from consumers now due to the price decline; especially since indicators show that markets will witness further price decline. He said the sales of all gold shops, including his shop, went down by about 20 to 25 percent, compared to about a month ago. He explained that the gradual rise in the price of gold in the past led to the inactivity of local gold shops, as many consumers feared the price hike. He thinks one of the reasons behind this rise is that many global economic companies pinned their hope on the victory of Trump’s opponent in the US presidential elections, but things turned out differently; hence, the decline in gold prices.

Murtada Daoud said the stagnation in the gold market is the status quo now, wishing for stability in gold prices. He pointed out this stagnation affects the monthly profits of gold shops and traders; urging consumers to buy, as estimates indicate that the decline in gold prices will not be exaggerated as some are thinking now. He added the majority of consumers buy gold in small quantities for personal use, so the price decline does not affect the purchase of a piece of about 10 grams of gold.

Rajab Tanudla affirmed the current movement of gold sales is very slow due to many reasons that he did not want to mention. He clarified there are gold purchases during this period, but most of them are for those who are about to get engaged or get married. He said some tend to sell their gold for fear of any upcoming collapse of gold, but they are very few.

Al-Wasmi Mohammad disclosed that he used to sell gold worth about KD10,000 weekly; but sales have declined by 65 percent, indicating most of those who sell their gold are those who are financially forced to do so. He believes Trump’s victory will change the American economic scene in the coming years; as the latter promised to rely on local oil, in addition to his pursuit of the strength of the dollar by reducing the volume of imports of oil and many other goods to avoid trade deficits. He cited Trump’s plan to impose high customs duties on Chinese products, indicating this measure will enhance the value of the dollar, because imposing duties on products that America used to import will lead to support the local American product.

CEO of one of the largest gold companies in the country and an expert in the field of gold jewelry Salah Al-Jimaz attributed the decline in gold prices to Trump’s victory in the US elections. He thinks this is among the main reasons behind the gold price decline because Trump promised to strengthen the economy and the dollar, as well as calm the political situation. Trump stressed that he would stop the war in Ukraine and follow calming policies in Gaza, and the reassurance to calm the strikes against Lebanon played a role in the decline in the price of gold, he elaborated.

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