‘Uncertain’ US policies keep demand for gold high, economist says

AMMAN — Gold prices on international markets are on the rise due to the “uncertain and foggy” US economic policies since President Donald Trump’s inauguration, according to economists. 

Gold prices are connected to factors such as economic growth, which witnessed the weakest performance in five years with less than 1.5 per cent in the last quarter of 2016, Mazen Irshaid said. 

The sudden decline of the US economy — the biggest consumer of gold besides China — caused the high demand on gold by investors as a safe haven, the economist told The Jordan Times on Thursday. 

Osama Imseeh, the president of the Jordan Jewellers Association (JJA), agreed with Irshaid and said that the “high level of uncertainty” over Trump’s decisions has led investors to buy gold. 

Gold prices increased $50 per ounce on US election day last November and dropped on the same day, Imseeh said.

The prices dropped $150 per ounce internationally a month later, where the ounce was worth $1,125, and increased on inauguration day by $100, he added.

“This increase is not the highest of all time compared to 2008, 2010 and 2011, when [the price per ounce] reached $700,” Imseeh noted.

“Gold prices do not affect the Jordanian economy, because they are international and enhance the value of the gold reserves in the Central Bank of Jordan. This could be considered positive,” Irshaid explained.

Gold prices on Thursday on the local market were JD866.55 per ounce; 24 carat JD27.86 per gramme, 21 carat JD24.37 per gramme and 20.9 for 18 carat per gramme, according to goldpriceo.com.