Demand For Gold In Jordan Loses Sparkle Amid Rising Prices

AMMAN – The tip of the yr has been marked by a notable lower within the native demand for gold because of rising costs and different financial elements, in accordance with stakeholders.

Husam Addin, a jeweller in Amman’s gold souk, stated that the market has been“robust” because the outbreak of the COVID-19 pandemic, with solely quick, short-term intervals of demand all year long.

“Earlier than the pandemic, I used to promote a minimum of JD20 to JD50 value of jewelry per day. Now I typically go for 5 days with out making one sale,” he instructed The Jordan Instances.

Husam Addin views the robust financial scenario as the primary purpose behind the low buying energy.

“Individuals are struggling to make ends meet, which leaves no room for such non-essential objects,” he stated.

Mohammad Abu Sarah, an worker at a neighborhood jewelry store, stated that though it is regular for year-end gold demand to be low, this December’s gross sales are weaker than normal.

Gold demand reaches its peak throughout the summer time, which marks the return of expatriates, who“have the next buying energy than native clients”, he instructed The Jordan Instances.

Bayan Bayya, an accountant at a jewelry store in Amman, stated that winter is a really stagnant interval for the gold market in Jordan.

“The financial scenario, marked by unemployment and a rise in costs, can be a contributing issue within the decreased demand,” she instructed The Jordan Instances.

Akram Al Shihab, a member of the Basic Syndicate of Homeowners of Commerce and Jewelry Retailers, famous that after life returned into pre-pandemic normalcy, the demand for gold in Jordan elevated by 50 per cent in the summertime of 2022.

“This was because of the truth that numerous Jordanian expatriates who could not journey throughout the pandemic’s lockdowns and restrictions returned to Jordan in the summertime,” he instructed The Jordan Instances.

Shihab added that this summer time additionally witnessed numerous weddings that had been postponed as a result of pandemic.

This stimulated the native market, as Jordanian weddings are sometimes accompanied by the custom of shopping for a major quantity of gold for the bride, he continued.

Nevertheless, the surge within the sector’s financial exercise was short-termed, he stated.

In October, the demand for gold dropped by 10 per cent, adopted by a 15 per cent drop in November and a 20 per cent drop in December, in accordance with Shihab.

As of Tuesday night, one gramme of 21 karat gold was being bought for JD36.80 and bought for JD35.30, whereas one gramme of 18 karat gold was bought for JD33.10 and bought for JD30.10, in accordance with the syndicate.

Economist Hosam Ayesh famous that there are a number of elements that affect the costs of gold.

Gold costs go down when rates of interest enhance. Additionally, when the US greenback weakens in opposition to different currencies, the worth of different nations’ currencies will increase, which will increase the demand for commodities like gold, resulting in a rise in value, he instructed The Jordan Instances.

In 2022, central banks world wide stocked up on gold in“report portions as a result of prevailing financial uncertainty and rising inflation”, which result in a rise within the costs of gold as a result of excessive demand, in accordance with Ayesh.

The Russia-Ukraine disaster has additionally lowered the gold provide, resulting in a rise in costs, he stated.

Economists predict that gold costs will surge above $2,300 per ounce in 2023 as recession fears develop, Ayesh added.

In keeping with Ayesh, Jordan’s jewelry imports elevated by 112.5 per cent throughout the first 9 months of 2022, in contrast with the identical interval in 2021, reaching JD1.387 billion.