An ounce of gold now costs about $900 to $1000 and this increase has affected most jewellery Bahraini gold sellers. As the US currency continues to plummet, the gold prices keep on increasing. People who normally buy Bahrain gold are now having second thoughts on buying or are simply buying less than usual.

Market price of gold if computed with the inflation should reach as high as $2000 plus for every ounce. In Bahrain, gold is pegged at about BD400 per ounce. Prices have been seen to rise steeply by 50% as the dinar-dollar exchange rates slip together. This has caused the gold to become more expensive as the months go by.

Since gold is a part of Indian and Arabian lifestyle, gold seemingly, is part of the tradition. This could be a reason
why people are still buying gold although the quantity has decreased as compared to previous years.

With the crisis in the worldwide stock markets, investors are being forced to liquidate their investments, which resulted to severe decrease in indexes, and economic assets like oil, precious metals, and industrial metals. As the dollar slows down against the euro to its all-time high, gold’s prices escalate. The weak dollar has caused gold to hit it really high, breaking all records.

Should the dollar recover a bit, the gold is estimated to drop but not below $700 an ounce. If the dollar dives continuously, gold will be cheaper for all non-US investors leading to a sharp increase in gold.

However, if inflation stays low and the dollar gains, US economy will not submit to recession. Those who invested in gold will either gain profit or just simply set gold aside again as an investment.