Revival in Jordan Markets after Early Disbursal of Salaries

People stand in line to buy bread at a bakery in Amman, Jordan, January 26, 2018. (Reuters)
People stand in line to buy bread at a bakery in Amman, Jordan, January 26, 2018. (Reuters)
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Revival in Jordan Markets after Early Disbursal of Salaries

People stand in line to buy bread at a bakery in Amman, Jordan, January 26, 2018. (Reuters)
People stand in line to buy bread at a bakery in Amman, Jordan, January 26, 2018. (Reuters)

Jordanian markets were revitalized in recent days after Prime Minister-designate Omar Razzaz ordered the early payment of salaries.

The rejuvenation coincided with the final days of the holy fasting month of Ramadan and the Fitr holiday that celebrates the end of the month. Market activity was noticeable at department stores and markets in western Amman, Abdoun and Jabal Al Hussein.

Markets were hit by recent protests against a contentious draft tax law. Razzaz’s appointment has eased the tensions.

The Consumer Protection Society (CPS) called on housewives against buying groceries on the eve of the Fitr holiday to avoid scams.

The Society also called on business owners to take into consideration the difficult economic situation in the country and avoid hiking prices.

In a related context, the Department of Statistics issued its monthly report on the record rate of inflation.

Figures showed that inflation in May reached 124.9 points compared to 118.9 for the same month in 2017.

The report showed that the record rate of consumer’s prices for the first five months of this year rose 4.1 percent compared to the same period in 2017.

Some commodities that contributed to this rise are tobacco (0.68 percent), rentals (0.43 percent) and fuel (0.29 percent). Major commodities whose prices dropped were vegetables and legumes (0.46 percent), clothes (0.05 percent) and shoes (0.01 percent).



Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
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Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.