Gold price surge shifts consumer trends, investment patterns - stakeholders

AMMAN — Gold prices in Jordan have experienced a significant surge since the start of the year, following global trends that have driven the precious metal to record highs, according to industry stakeholders.

President of the Jordanian Jewellers Association Rabhi Allan noted that "gold prices in the local market have risen by 15 per cent in less than three months." The price per ounce increased from $2,638 at the close of 2024 to $3,057 last week, before stabilising at $3,022 on Friday. 

The sharp rise in prices has begun to affect consumer behaviour in the Kingdom. Allan observed a noticeable decline in demand for gold jewellery, with many consumers opting to delay major purchases.

Saleem Mohammad, a jeweller based in Amman, said that while gold traditionally enjoys high demand for weddings and special occasions, many customers are postponing such purchases due to the escalating prices. 

Mohammad also pointed out a shift in sales patterns, with an increase in the purchase of gold bars and coins. "People are viewing these as a safer investment amid rising prices," he said.

The impact of rising prices was also evident during Mother's Day, when many customers sought lighter gold pieces or gold-plated alternatives rather than solid gold, as they looked for more affordable options amidst the price hikes.

International media outlets report that Wall Street analysts expect gold prices to continue rising throughout the year. As a result, gold remains a preferred safe-haven asset for investors, with expectations of further price increases in the near term.