Record-Breaking Gold Prices in Jordan
Gold prices in the local market reached unprecedented levels on Thursday, following a record-breaking increase to $2,300 per ounce in global trading at the close of Wednesday’s session.
Ribhi Allan, president of the General Association for Owners of Jewelry Shops, highlighted that prices for various karats of gold have surged to new records. The highly sought-after 21-carat gold is now priced at JD46 per gramme for sale by jewellers, compared to JD44 for purchase.
Furthermore, the selling price per gramme for 24- and 18-karat gold stands at JD53 and JD41.20, respectively, in transactions with goldsmiths’ stores. Additionally, the Rashadi lira, weighing seven grams, is priced at JD324, while the English lira, weighing eight grams, has reached JD370, representing a substantial increase of JD30 within just one month.
Impact of Global and Regional Events
Allan attributed the weakened demand-supply dynamics in the local gold market to the escalating prices, citing recent events such as the Israeli war on Gaza. He mentioned that the conflict disrupted wedding ceremonies, leading to their postponement, which impacted the demand for gold in the market.
On a global scale, Allan noted that gold concluded trading at an all-time high of $2,300 per ounce, with a $200 surge over the past month. This upward trend is driven by geopolitical tensions, regional instability, and fears of escalating conflicts worldwide.
Investor Behavior and Central Bank Acquisitions
The state of uncertainty has prompted investors to seek refuge in gold as a safe haven investment, according to Allan. Central banks around the world are also actively acquiring substantial quantities of the precious metal, leading to a demand that surpasses the available supply in global markets and propelling prices to unprecedented levels.
Additional Insight:
– The fluctuations in gold prices underscore the interplay of various economic, geopolitical, and social factors that influence market dynamics.
– Gold has historically been viewed as a hedge against inflation and market instability, further fueling its demand during times of uncertainty.
