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AMMAN — Gold market is witnessing unusually low activity despite the onset of the traditionally high-demand summer season, with jewellers and analysts citing soaring global prices and persistent economic uncertainty as key factors behind the slowdown.
“Foot traffic in gold shops remains below normal levels,” said Rabhi Allan, President of the Jordanian Jewellers Association. He attributed the slow demand to a combination of rising international gold prices and domestic factors.
“Gold prices have increased significantly on the international market, and locally, families are currently preoccupied with school and university exams, which has reduced shopping activity,” he said.
"Typically, the summer season brings a surge in gold sales due to weddings and holiday travel. However, this year, economic pressures appear to be reshaping consumer behaviour," he said.
Economic analyst Waseem Hussein said the trend reflects the broader impact of the “Permanent Income Hypothesis,” which suggests people are basing spending decisions on long-term income expectations rather than current earnings.
“Many households are making financial decisions based on long-term expectations of income stability rather than immediate earnings. With ongoing inflation and global uncertainty, discretionary purchases like gold are being postponed,” he noted.
Shoppers echoed similar sentiment. In downtown Amman, 29-year-old Rana Ali, who had been planning to buy a gold set for her engagement, said she had to delay the purchase. “Gold is too expensive right now, and I have more urgent expenses,” she said.
Jewellers also report noticeable shifts in customer behaviour. “People come in to browse, but most leave without buying,” said Ali Nassar, a jeweller in Amman. “This is usually our busiest time of the year.”
He added that among those who do make purchases, the gold lira remains popular as it is viewed as a secure investment. “People who buy now usually opt for the gold lira because it’s considered a safe bet,” he said.
Some industry stakeholders believe shifting social dynamics are also contributing to the trend. “This summer, people are prioritising essentials. There’s more spending on household necessities rather than luxury items,” said a merchant who preferred to remain anonymous.
With gold prices remaining volatile and domestic economic challenges persisting, many in the industry believe that any significant recovery in the market is unlikely without broader economic improvement.