Gold demand surge despite high prices

AMMAN — Gold jewellery purchases have increased amid apparent enthusiasm by customers and investors, despite soaring prices, according to stakeholders.

The price of gold extended its gains on Friday, driven by demand for safe havens metals and the potential reduction of interest rates by the US Federal Reserve in September, sector operators told The Jordan Times.

Reflecting on the current demand for gold, Tawfiq Abu Hantash, a local jeweller, told The Jordan Times that Jordanian consumers are either investing in gold coins or selling off old jewellery. He also noted that people are changing their typical pattern of gold buying and are opting for gold pieces that retain more value when sold.

“In July, demand has soared by no less than 40 per cent,” he said.

“Gold will always remain the ultimate safe haven asset and a hedge against inflation,” Mohammad Junaidi, owner of a jewellery store in Amman, told The Jordan Times on Saturday.

He added that gold investments offer protection against market volatility, providing more safe haven properties than stocks.

“Anxiety over economic turmoil is among the main factors fuelling the increase in gold demand, as it is a long-term store of value,” Waseem Hussein, an economist, told The Jordan Times on Saturday.

He also pointed out that “gold coins and bars are a major channel of investment, and with each new bout of news, significant numbers of people rush to buy gold these days.”

Currently, one gramme of 21-karat gold is sold for JD49.6 and purchased for JD47.7.