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AMMAN — Escalating geopolitical tensions, global economic uncertainty and shifting investor sentiment continue to shape gold prices and consumer behaviour in Jordan, according to Akram Shehab, member of the administrative board of the Jordanian Jewelers Syndicate (JJSJO).
In an interview with The Jordan Times, Shehab said that developments in international politics remain the primary driver of gold price volatility, leaving both traders and consumers uncertain about the direction of the market.
"Global prices are fluctuating because of ongoing geopolitical tensions, particularly the conflict involving the United States and Iran," he said.
"Markets are reacting to every development, and people simply do not know what will happen next."
Shehab noted that periods of military confrontation and subsequent diplomatic developments have created sharp swings in international gold markets, with investors closely monitoring every geopolitical signal.
Beyond regional tensions, broader global economic factors, including US monetary policy, inflation concerns and movements in the US dollar, continue to influence gold prices worldwide, with direct implications for Jordan's market.
Shehab said that political developments in Washington have heightened uncertainty for investors, contributing to sharp market fluctuations.
"The uncertainty has caused significant losses in financial markets, forcing many investors to liquidate assets," he said, adding that market volatility has weighed heavily on investor confidence.
Domestically, Jordan's gold market has experienced a noticeable slowdown compared with previous years.
"There is a general slump in demand," Shehab said, attributing the decline to uncertainty over whether regional conflicts could widen.
"The market is volatile, it improves at times and then falls again."
The surge in gold prices has also altered consumer behaviour.
According to Shehab, purchases of gold jewellery have become largely confined to essential social occasions such as weddings and engagements, with consumers limiting purchases because of concerns over continued price fluctuations.
"Buying gold jewellery has become very limited. People are only making small purchases when necessary."
He added that investment patterns have also shifted.
“While gold coins and lira pieces were previously popular among retail investors, their appeal has declined.”
He said that people are no longer buying gold coins as much as they used to. "Instead, many are turning to silver bullion as a more affordable investment."
Shehab said that predicting the future direction of gold prices remains exceptionally difficult, given the number of political and economic variables affecting global markets.
"Political stability is far too uncertain. No analyst can accurately predict developments involving major economies such as China and India or the impact of central bank gold reserves."
Despite the uncertainty, he believes gold will continue to attract investors seeking protection against global economic turbulence.
"There is economic turmoil around the world. People are increasingly turning to gold as a safe haven to preserve their savings."
Market analysts broadly agree that the outlook for gold will depend on a combination of geopolitical developments, central bank policies, inflation trends and the trajectory of US interest rates, all of which will continue to influence investor sentiment in the months ahead.
The selling price of a gram of 21-Karat gold on the local market on Sunday stood at JD83.1 in goldsmiths’ shops, compared with JD79.1 for buying, Al Mamlaka TV reported.
According to the General Syndicate of Jeweller and Jewellery Shop Owners, the selling price per gram of 24-Karat and 18-Karat gold at goldsmiths’ shops stood at JD95.1 and JD73.2, respectively.
