Allan: Global Gold Rise Does Not Boost Local Demand

Local demand for gold continues to be weak, amid rising global prices, with a decline in demand for bullion and coins, according to Rafiq Allan, the head of the Association of Jewelry and Goldsmiths.

In a statement to» Alrai»; Allan explained that demand in local markets remains weak, while the supply of gold remains at limited levels.

On the global price front, gold closed trading on Friday evening at $4378 per ounce, amid ongoing volatility between rise and fall.

Allan pointed out that the US Federal Reserve's decision to raise interest rates had no significant and lasting impact on gold movement, considering that the increase was expected by the markets for some time, which made its impact concentrated in a momentary fashion, before gold resumed its rise to its highest levels.

He noted that news and political developments related to the Straits of Hormuz and Bab al-Mandab have become the main factor affecting gold prices, considering that their impact on the movement of the yellow metal currently exceeds the impact of economic data issued by the US Federal Reserve.

This comes as global markets witness fluctuating gold movements, while the rise in global prices does not reflect on local demand activity, which remains affected by the weak demand for various forms of gold.

According to local market traders, it is customary for demand for gold to increase when prices rise, with citizens buying in anticipation of further increases, while the movement usually slows down when prices fall, anticipating further declines, but the market is currently witnessing a weakness in demand despite prices remaining at high levels.

Allan warned those wishing to buy gold against relying on unreliable offers, calling for communication with the union committee to verify the invoice, weight, fineness, and wages.

He stressed the need to purchase from licensed commercial outlets and obtain an official and stamped invoice, to protect consumer rights and ensure the safety of the purchase process.

According to statistical data from the Jordan Chamber of Industry, the gold and jewelry sector in the Kingdom includes about 250 factories and workshops specialized in goldsmithing and jewelry design, providing nearly 10,000 job opportunities.