The report attributed the shrinkage in demand to the introduction of a sales tax on small gold bars up to 100 grams.
“In the Middle East, weak domestic currencies saw high prices in Turkey and Egypt. However, concerns about further economic and currency weakness, together with a lack of investment alternatives, resulted in sluggish recycling supply, demonstrating gold’s attraction in the face of economic and political turmoil,” the report said.
Moreover, the WGC’s report showed that the demand for jewellery in Egypt dropped 27 percent annually in the third quarter of 2023 due to the devaluation of the pound.
Since the beginning of the comparative period (July, Q3 2022), the Egyptian pound has lost 39.11 percent of its value, declining from $0.053 to $0.032.
Middle East, global markets
Among the biggest gold markets in the Middle East, Turkey and Iran saw a contraction in demand. In Turkey, the demand for gold bars and coins declined by 16 percent annually to 30 tons in the third quarter of 2023.
However, the demand was 40 percent higher than its average in the last five years.
In Iran, the demand for bars and coins dropped 29 percent annually to 10 tons in Q3 2023.
Globally, the demand for gold reached 1,147 tons in Q3 2023, 6 percent lower than the same quarter last year but 8 percent higher than its average during the last five years.
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