AMMAN — Local
demand for gold increased noticeably in the past weeks, and it is expected to
continue to spike further, according to the head of the
Jordanian Jewelers Syndicate, Ribhe Allan.
اضافة اعلان
Allan attributed the local market increase in demand
for gold to several factors, including the global decrease in gold prices, due
to the higher dollar interest rates, and to the arrival of the wedding season,
which usually follows
Ramadan, and which, these days, sees an a rise in
celebrations previously often postponed because of the pandemic.
Gold prices have decreased internationally from $2,000 per ounce to $1,808 per ounce.
Furthermore, Allan said that the ease with which
merchants can cash out on gold encourages them to further invest in it, unlike
investing in stocks.
Gold prices have decreased internationally from
$2,000 per ounce to $1,808 per ounce.
Allan expects gold prices will be stable “unless
events in
Ukraine impact the global market”, and encourages citizens “to
purchase gold, which is a safe investment”.
Economic analyst
Mazen Irsheid told
Jordan News that the global gold prices are affected by the interest rate on the dollar,
adding that normally “it is more feasible and tempting for people to deposit
their money in dollars or purchase treasury bills, which, unlike gold, provide
a stable and continuous revenue”.
This being the case, “gold prices can be expected to
fall globally”, and local demand for it to climb further”, Irsheid said.
He added that conflicts like the
Russian-Ukrainian war caused gold prices to rise and reach $2,000 per ounce, but “now people have
forgotten about the war and will likely purchase more gold”.
Economic and Investment Specialist
Wajdi Makhamreh told
Jordan News that when people witness international financial
hardships, and inflation grows, they “prefer to put their money in safe
assets”. Gold, he said, is one of the safest investments because it does not
depreciate even when there is inflation.
Like Allan, he believes that that many Jordanians
will celebrate weddings and other occasions, which is bound to see demand for
gold grow.
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