“Jewelers”: Gold market enters a seasonal lull

The head of the Jewelry and Goldsmiths Association, Rebhie Allan, revealed that the local gold market is witnessing a clear decline in demand and purchasing activity, coinciding with the end of the summer season and the usual slowdown in the jewelry market, amid traders' anticipation of price movements in the coming period.

In a statement to "Alrai," Allan indicated that the pace of demand in the local market has reached weak levels, explaining that this decline is normal at the end of the summer and wedding season, which usually ends by the end of September.

Allan explained that demand for gold usually slows down after the wedding season ends, as the market enters a quieter period that extends until the end of the year, especially with the decline in the demand for jewelry compared to the summer period, which sees greater activity due to events, weddings, the return of expatriates, and spending associated with the season.

He pointed out that the improvement of market activity during this period is largely linked to price levels, as a tangible drop in gold prices may prompt citizens to increase their purchasing, reviving activity in jewelry shops, while high prices limit the purchasing power of a segment of consumers.

Allan indicated that the local market is also affected by global price movements and economic and geopolitical developments, noting that gold closed Friday evening at about $2,485 per ounce, which is a high level, but falls within levels expected by analysts in global markets.

He added that global geopolitical developments remain among the most prominent factors affecting gold movement, especially developments related to the Strait of Hormuz and Bab al-Mandab, due to their repercussions on oil prices, energy, and major currencies, and consequently on investor trends in gold markets.

Allan pointed out that investors monitor oil price movements and energy-related developments when making decisions to buy and sell gold, at a time when global markets remain highly sensitive to any new geopolitical or economic developments.

Allan warned those wishing to buy gold against relying on unreliable offers, calling for communication with the association's committee to verify the invoice, weight, karat, and workmanship fees.

He emphasized the necessity of buying from licensed commercial shops and obtaining an official, stamped invoice to protect consumer rights and ensure the integrity 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 specializing in gold smithing and jewelry design, providing approximately 10,000 job opportunities.