Demand for gold drops by 60% in July

AMMAN — Local demand for gold is expected to increase this month and the next after dropping by 60 per cent in July compared with the same month last year, according to a sector leader.

Jordan Jewellers Association Secretary Rebhy Allan told The Jordan Times on Thursday that the demand for gold reaches its peak in August and September of every year, during the wedding season and the return of expatriates.

“The demand for gold in the domestic market eases off during Ramadan and then recovers between Eid Al Fitr and Eid Al Adha,” Allan said in a phone interview, adding that gold worth JD17 million was sold this July, compared to JD30 million in gold sales in July 2013. 

Allan added that the political situation in Gaza has also contributed to the low demand, as well as a sharp fall in the metal’s value in April 2013 as an improvement in the American economy encouraged the public to buy bonds in US dollars, which, as a result, strengthened the dollar and negatively affected gold.

“However, the demand for gold is expected to rise due to the global demand of investment corporations for gold,” he said. 

Allan said the price of 24-karat gold in the local market stood at JD30 per gramme on Thursday, while 21-karat gold was priced at JD26.5 per gramme, and 18-karat gold was worth JD22.5 per gramme.

According to sector insiders, Jordanians bought nearly 10 tonnes of gold last year, which is double the amount purchased in 2012.