KUWAIT (Commodity Online): At a time when the Muslim world is celebrating Eid, the gold market in Kuwait is witnessing a holiday as customers are staying off the jewellery shops due to the soaring prices of the yellow metal.

Gold prices rose to $1,195 per ounce in the global bullion market on Thursday, following the news that Dubai has failed to pay its debt to global bank and has siugh 6 months’ time to pay off the debts.

News about India’s bid to buy more IMF gold has also added to the rise in gold prices.

Many customers in the Gulf countries are avoiding the purchase of the precious metal as a gift for their loved ones this holiday. Many shop owners at the Gold Market in Mubarakiya have noticed a sudden slump in the number of customers for over two consecutive months.

Usually at this time of the year, jewelers are so busy attending to customers that they normally don’t get time to take rest. However, this time it is an absolutely different story. Jewellery shops barely have any customers.

A Kuwait Times report said people know that gold prices are really high. So people won’t buy gold this time. Everybody is waiting for a miracle to happen, for the price of gold to come down.

Many Arabs complete their Eid holidays by gifting the precious yellow metal for their loved ones. This time however, they are keeping their purse strings tight.

Those who are actually planning to buy gold have already shifted to other options. Most people, especially regular gold buyers are holding their dollars back.

This year marked one of the lowest gold sales for gold retailers. Customers are putting a cap on jewellery purchases.

Prices of gold in Kuwait market are heavily dependent on the international price tags. Gold has hit a record price of $1,195 an ounce. The price tag though will increase dramatically when the precious metal is turned into ornaments like necklaces, rings, earrings, bangles or armbands.