Doha, February 20 (QNA) - The holy month of Ramadan continues to consolidate its position as a peak season for the gold market in Qatar, despite unprecedented global price levels for the precious metal, which have recently surpassed the $5,000 per ounce threshold for the first time in history.

This year's Ramadan coincides with a historic surge in gold prices, driven by a complex interplay of geopolitical tensions, supply-chain disruptions, and shifts in the monetary policies of major central banks toward easing cycles and diversification of reserve assets. These global developments have been directly reflected in local market prices, pushing retail gold rates in Qatar to record highs.

Gold traders told Qatar News Agency (QNA) that demand has not been significantly undermined by the sharp price increases. On the contrary, growing awareness of gold’s role as a long-term investment and store of value has reinforced consumer confidence, even as some market participants anticipate adjustments in purchasing patterns among certain segments due to higher costs. This divergence highlights evolving consumer behavior under the influence of global economic uncertainty.

In this context, Ali Salah Al Yafai stressed that Ramadan remains a key barometer of the vitality of the local gold market, noting that record price levels are unlikely to weaken demand and may instead strengthen confidence among a broad segment of consumers in gold as a reliable hedge against economic volatility.

He explained that the price of 24-karat gold recently exceeded QR 595 per gram, compared with around QR 360 during the same period last year, while 21-karat gold stabilized above QR 520 per gram, up from approximately QR 315 in 2025. Despite the sharp increases, he noted that many buyers still consider current levels acceptable entry points, supported by expectations of continued upward momentum over the medium term.

Al Yafai also highlighted a noticeable improvement in financial awareness among consumers, with gold increasingly viewed as a strategic long-term asset rather than merely a form of personal adornment. He anticipated stronger purchasing activity throughout Ramadan -- traditionally one of the most active seasons for gold sales -- particularly from the beginning of the month until the night of Garangao celebrations, affirming that demand has not been materially affected by global price surges.

For his part, Jassim Ahmed Al Yafai expected demand to remain robust, especially during the first half of Ramadan, driven by sustained interest in traditional Qatari jewelry designs which are increasingly valued not only for their aesthetic appeal but also as family heirlooms passed down through generations.

He pointed to a shift in consumer behavior toward combining traditional jewelry purchases with small gold bars or coins, reflecting a hedging approach that balances cultural preferences with investment considerations and liquidity needs, thereby offering greater financial flexibility to consumers.

Conversely, Nasser Al Awlaqi ruled out a significant increase in overall sales volumes compared with previous years, attributing this to the rapid escalation in prices over a short period, which could weigh on the purchasing power of some consumer segments.

He noted that the near doubling of gold prices per gram compared with a year earlier may encourage some buyers to reduce quantities or opt for lighter-weight pieces, emphasizing that retail demand tends to remain more sensitive to price fluctuations than investment-driven demand.

Against this backdrop, Qatar's gold market enters the Ramadan season amid a complex set of factors that heighten uncertainty surrounding price trajectories, while simultaneously reinforcing gold's status as a safe-haven asset and dependable store of value.

Despite global market volatility and the rapid pace of economic and monetary shifts, gold continues to maintain strong appeal among both consumers and investors, supported by seasonal demand rooted in social traditions and the cultural significance of the holy month. As a result, the precious metal remains a pillar of relative stability in the local market, even amid heightened global uncertainty. (QNA)