Factors & Trends Influencing Qatar Gold Prices

The factors & trends influencing Qatar gold prices.

We all know that Qatar is heaven for jewellery lovers and gold marketers, as gold is tax-free in the country. You will find many big and small gold shops and gold markets in Qatar actively participating in the gold business.

As an investor or buyer of gold or jewelry, you know that the element of risk is attached to the gold business making it vulnerable. Just like in every market in a country, the gold rate fluctuates in Qatar due to the impact of many factors some are global, and others are internal.

Some factors have a large impact while others have little effect on the gold rates. Somehow, factors & trends influencing Qatar gold prices are important and a vigilant businessman always keeps a close eye on it to ensure safe business deals. Let’s discuss each factor one by one in detail.

Global Gold Market Price

Gold prices are on an upward trend from 2019 to 2023, with a slight decline in a few months. Qatar adheres to the global gold prices which are traded & set on a daily basis in the international gold trading markets like New York Mercantile Exchange. By the way the current gold rate per gram is USD 76.86.

If there is an increase in the gold prices internationally, then obviously the gold rate will rise domestically in Qatar. As you know, the same phenomenon is applicable to all the commodities of the country.

Central Bank Gold Reserves

The central bank keeps reserves of gold and foreign currencies to manage the flow of money domestically and internationally. When Qatar Central Bank starts purchasing more gold to increase its reserves, the gold rate will go up.

Inflation In Qatar

In inflation, as we all know the prices of commodities go up and the value of money goes down. Now, buyers have to pay more money to buy the same amount of commodities that buyers previously got for lesser money.

Hence, due to the devaluation of money, more people are willing to hedge their asset value into gold. Therefore, the demand and prices of gold go high.

Now, inflation can be due to excessive demand, rise in production cost, central bank policies, government tax policies, the weak exchange rate of the country’s currency, people’s price hike expectations, rumors, geopolitical tension, natural mishaps, etc.

According to World Data, the average inflation rate in Qatar was 3.4% per year considering the period from 1980 to 2022. In the year 2022, the inflation was 5%.

Therefore, factors & trends influencing Qatar gold prices pertaining to inflation are important to make investment decisions in gold.

The portfolio investment in gold is considered best. You can hire the services of a professional investment manager or broker in the Qatar Stock Exchange or if you are experienced you can do it by yourself.

Import Duties & Domestic Taxes On Gold

Another factor that adds-on to the price of gold in a country is the import duties and domestic tax rates.

If the government of Qatar imposes or increases the tax or duties on gold, the gold rate will rise in the local market and vice versa.

In Qatar, the buying and selling of gold is tax-free. It’s a big attraction for foreigners and residents in Qatar. Therefore, there are large numbers of gold jewelry shops in the country. The most renowned gold market is Gold Souq Qatar which has more than 40 gold shops.

The selling of gold is regulated by the Ministry of Interior, Qatar to regulate secure gold trading and hence NOC is made compulsory for all sellers.

In 2022, the export value of gold from Qatar was $2.68 Million.

Sales in Ramadan & Garangao Festival

In the month of Ramadan, the demand for gold greatly rises in Qatar in the form of gold bullion and jewelry. The jewellers in Qatar said that around 50% to 60% of sales rise in Ramadan as compared to the sales of the remaining months.  So, as the demand rises actively, the gold rates in Qatar also increase.

Garangao festival is celebrated in the mid of Ramadan, every year in Qatar and other Gulf countries. On the evening of this occasion, children walk in the nearby streets singing traditional Qatari songs. Qatari families exchange gift hampers, sweets, and gold ornaments with the children, family members, fellows, and neighbors.     

Hence, the festivals and traditions in the country also increase the demand for gold resulting rise in the prices.

Currency Exchange Rate Of Qatari Riyal

The currency exchange rate plays an important role in deciding the gold rate trend in the country. If the currency consistently weakens against US Dollar, the price of gold will rise in the country.    

In the months of June and July 2023, 1 Qatari Riyal against US Dollar is hanging between $0.2743 to $0.2744. 

Qatar has a strong economy and currency. If you look at the two years currency fluctuation data of the Qatari Riyal from 2021 to 2023. You will come to know that its money is very much stable and consistent against US Dollar.

The gold investors in Qatar have to consider the currency trend of the Qatari Riyal (QAR) and its impact on short and long-term gold business decisions. 

Investor Sentiments

The thinking and judgment of investors in a country is also a factor that can drive the gold rate in the market. The speculation can sometimes manipulate the gold rate movements in the short term. The investor with positive sentiment keeps the rates according to the market.

Demand & Supply Of Gold

The rules of demand and supply work for every commodity in the country and it includes gold as well. If the demand for gold becomes short in Qatar due to any reason and the supply is high, the gold rate will fall and vice versa.

Geo-Political Conditions

The tensions in the region among countries and governments also put an impact on the prices of gold. The wars, political instability, and natural disasters cause the gold price to move upward..


The combination of the above factors & trends influencing Qatar gold prices plays a critical role in deciding the gain or loss to businessmen. Investors should carefully consider each factor and its short-term and long-term impact on gold prices.