Gold prices spike as new tax comes into force

AMMAN — Prices of gold at the local market increased by JD0.50 per gramme after levying a new tax on stamp, a sector leader said.

The government recently imposed a 16 per cent fees on the JD0.75 stamp for each gramme, which took effect on Sunday.

The hike was slowed down by the decline of the international price of gold ounce after the recent US strike against Syria were found to be less influential than economists’ expectations, Jordan Jewellers Association’s Secretary General Ribhy Allan told The Jordan Times on Tuesday.

Before the strike on Friday, the ounce price jumped to $1,365 while it plummeted down to $1,335 after the strike and currently settled at $1,345, according to the secretary. 

The price of 21-karat gold stood at JD28.3 per gramme on Monday, compared with JD72.8 last week, Allan noted, adding that for other karats, the price of 24-karat gold stood at JD33 per gramme, while 18-karat gold was worth JD25.2 per gramme.

The price of a Rashadi lira, weighing seven grammes, stood at JD195, while an English lira, which weighs eight grammes, is worth JD226, according to Allan.

The official said that the difference in prices will not be significant for people who buy gold for wedding dowries or as accessories; however, it will be for those buying large amounts for saving and investment.

In 2017, Jordanians bought 10 tonnes of gold with a value of around JD250 million, 60 per cent of which were for accessory purposes, and 40 per cent for saving and investment purposes, according to the association’s statistics.