In the first two days of the holy month, gold sales remained dull in many parts of the region, especially in the UAE and Saudi Arabia, the two largest gold markets
RIYADH(BullionStreet): Gold markets across the Middle East are geared up for the Ramadan sales which normally provides a much needed boost to annual sales of the region.
The holy month of Ramadan came after global markets witnessed price plunges twice since the new year but now the prices are recovered.
Analysts however said sales would increase in the run-up to Eid Al-Fitr, the culmination of the holy month.
People in the region used to giving gold jewelry as gifts to their loved ones during the period and are waiting for more drops in prices.
Gold retailers across the region often stock up on gold and jewelry ahead of Ramadan and as it is typically a good time for sales.
In the first two days of the holy month, gold sales remained dull in many parts of the region, especially in the UAE and Saudi Arabia, the two largest gold markets.
They said that the recent decrease in the price of gold had failed to lift potential customers already suffering in the economic downturn.
They added that the two factors of 'high price' and 'hope for the price drop' prevent an early gold sales boom despite the fact that the holy month and Eid are typically big seasons for gold sales.
Most gold merchants in the region are of the opinion that market indications point to record sales this time around are impatiently waiting for the second half of the holy month when sales invariably shoot up.
In Saudi Arabia, gold sales are also based on the purchasing power and presence of over six million pilgrims during the Haj and Umrah seasons.