Morocco: gold price rise hits jewellery market

Gold prices have jumped to record levels as global tensions rise, putting pressure on Morocco’s jewellery market, as reported by Africanews and agencies on January 29th.

Gold has risen above $5,000 an ounce in recent weeks as investors seek safer places to put their money amid geopolitical strain and economic uncertainty. While gold is often seen as a safe option in difficult times, the sharp rise in prices is creating problems for local businesses in Morocco.

According to the Africanews report, jewellers and traditional artisans have said the higher cost of gold has pushed many customers away. With prices increasing, fewer people are buying jewellery, forcing some shops to shut down. 

Saad Kamar, who is a gold trader, said several global factors are driving the surge. He mentioned: “Some countries are purchasing gold in large quantities.” This increase in buying has pushed prices higher across international markets.

Kamar also highlighted wider political and financial concerns. “Strategic factors also play an important role, particularly geopolitical tensions and the decline of the US dollar within the international monetary system,” he added.

Ongoing conflicts and tensions between major powers have made investors nervous. At the same time, the decline of the US dollar is leading more governments and investors to turn to gold as an alternative source of value.

In essence, the impact is not limited to Morocco. The World Gold Council has said rising prices are reducing demand for gold jewellery worldwide. As prices climb, buyers ultimately delay purchases or look for cheaper alternatives, which could affect jewellers across many countries.

For now, traders and investors continue to keep a close eye on global developments, as changes in politics or currency markets could push gold prices higher or lower. Meanwhile, jewellers in Morocco continue to struggle.

Africanews and agencies, Maghrebi.org