Lebanese Jewellers Struggle with Volatile Gold Market Fluctuations

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Gold Prices Reach Record High Amid Global Uncertainty

In Beirut, Lebanon, gold prices have surged to nearly $5,000 per troy ounce, sparking concerns among industry professionals. Simon Bouri, owner of a local jewelry store, expressed his uncertainty about the market fluctuations. “We cannot predict anything,” he said. “It’s crazy.”

Aziz Arida, who works in commodities, noted that a 20% fluctuation in one day is rare, even compared to the Chornobyl disaster in 1986. The cause of the recent price surge remains unclear.

Lebanon has been experiencing an economic crisis since 2019, which has led many to invest in precious metals as a means of protecting their assets from inflation. Gold prices have historically risen during periods of geopolitical or economic uncertainty.

Recent global events, including the return of Donald Trump to power and tensions with Iran, have contributed to market volatility. Analysts are divided on the cause of the price surge, with some attributing it to investors selling when the valuation was high, while others believe it was a correction due to overvaluation.

JP Morgan analysts predict that gold prices could increase by 30% before the end of 2026. However, many in the industry remain skeptical about the market’s stability.

In Lebanon, the economic crisis has led to a severe liquidity crisis, with banks unable to meet depositors’ demands since 2019. The country is currently debating a gap law that would allow depositors to access some of their frozen funds. Remittances from family working abroad have become increasingly important for many Lebanese, averaging $5.8 billion per year between 2020 and 2024.

Industry professionals are waiting for the market to stabilize before making any major purchases. As one Beiruti jeweler noted, “Go ask Trump,” when asked about the cause of the price surge.

Source: Al Jazeera