Gold price surge in Jordan tied to inflation, regional tensions — stakeholders

AMMAN — As gold prices soar to unprecedented levels, traders, investors, and speculators in Jordan assert that the surge is not just a financial trend but a reflection of deeper economic realities.

Kamal Da'na, an employee at a jewellery store, told The Jordan Times that stakeholders are grappling with the effects of these historic highs and the uncertainty surrounding them, which underscores the interconnectedness of international economies.

"In Jordan, the record-high price of JD55.2 per gramme for 21-carat gold is a result of both international and local challenges, including inflationary pressures and regional instability," Da'na added.

Mohammad Junaidi, a jewellery store owner, attributed the price surge to various factors, such as high inflation in major economies, regional unrest, and central banks increasing their gold reserves.

Junaidi noted that the sharp rise in prices poses a significant challenge for average consumers who traditionally buy gold for cultural reasons and as a means of savings.

"The gold market is highly sensitive to international economic trends and speculation," said economist Waseem Hussein.

"In times of economic uncertainty, like the ongoing Israeli war on Gaza and Lebanon, gold prices tend to rise as investors anticipate further market disruptions," he added.

Hussein stressed that gold has always been, and will continue to be, a crucial barometer of economic sentiment in the region.