Even though the global gold price trend may not be too appealing, not all regions are alike. In Jordan, the price of bullion is rising rapidly. An interesting trend, and one that shows there may be sunshine after the rain.
Jordan Shows a High Demand for Gold
According to sources close to the matter, Jordan is noting an increased demand for gold bullion. Price of selling and buying have noted a solid uptick, although the price is not that far from the overall market value. More specifically, the selling price is nearly $2 lower per gram compared to the buying value. Projecting this value to ounces, there is a $60 deficit between the two sides of the market.
It is not uncommon to see premium prices being charged in Jordan all of a sudden. Although the region isn’t new to bullion by any means, it would appear that things are picking up all of a sudden. Considering how other regions note a decrease in gold demand, the trend in this country is all the more remarkable.
In the country, there are roughly 850 gold merchants and goldsmiths. They have ample capital at their disposal, thus it is likely that the gold price premium will increase even further. At the same time, one has to wonder if this is merely a temporary trend.
Similar to other regions, Jordan is still hit hard by the COVID-19 pandemic. There is plenty of financial uncertainty to go around, driving investors to alternative markets. Whether this is the reason for this interest in gold, remain to be determined. It is intriguing, and potentially a sign of what may occur in the rest of the world.
More Downward Market Pressure Globally
Looking at the current gold price chart, things continue to look rather bleak. Following the recent value decrease from over $1,950 an ounce to the low $1,860 range, things are not improving as of yet. The increasing demand in Jordan isn’t helping the market recover as of yet, but things may begin to improve gradually.
In situations like these, it is always important to look at the bigger picture. Many macroeconomic aspects are still at play. Their impact on the gold price remains undetermined, as the market can easily swing either way. Until a global financial recovery occurs, there will be demand for safe haven assets and precious metals.