DUBAI, Feb 11: Record high prices are putting pressure on gold demand growth in the Gulf Arab region, but the precious metal is expected to maintain its lustre as market turmoil stokes buyers’ interest.

Gold’s surge to multi-year highs has scared buyers in many parts of the world and left them to watch helplessly the blistering rally that shows no signs of abating.

It has doubled in just two years. Spot gold hit a lifetime high of $936.50 an ounce on Feb 1.

Analysts say growing concern about the health of the US economy and recent falls on Gulf bourses are boosting interest in gold.

“Worries about the future of the global economy have encouraged some buyers to divert or rather keep their attention on gold,” one Gulf-based analyst said.

“This should keep the Gulf demand for gold steady this year ... if the situation was different I would have expected a reversal of the growth we saw in 2007.” Fears of a global credit crunch have also revived bullion’s long-dormant safe-haven status.—Reuters