It’s not news that Saudis like to purchase gold. But with Ramadan here and Eid Al-Fitr only a week away, rising prices have put a pinch on many gold dealers around the Kingdom this year.

Demand for gold in Saudi Arabia, the world’s fifth largest jewelry market, reached a total of 42.5 tons in 2006, according to data from the gold demand trend report published by the World Gold Council (WGC). Second quarter reports also issued by the WGC showed that demand in the Kingdom surged 30 percent during the same period providing further support for Saudis’ admiration for the precious metal.

But it appears this demand is cooling down. Ahmed Salim, marketing and sales manager at Lazurde’ Gold Jewelry in Riyadh, told Arab News that the high prices this year has made a difference in sales. Without citing specific figures, he said that his company is witnessing a slowdown.

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