Morocco's Gold Market Faces Global Price Decline
In a significant shift within the financial markets, gold prices in Morocco are experiencing a slower decline compared to the sharp downturn witnessed globally. The recent selloff has pushed international gold prices below $4,000 per ounce, prompting many jewelers and consumers in Morocco to closely monitor whether these reductions will be reflected in local shops. As of late last week, spot gold prices dropped by 3.5%, settling at $3,880.97 per ounce, marking the lowest levels since October 2025. Additionally, US December futures saw a decline of 3.3%, reaching $3,898.90, according to market data.
This substantial selloff followed notable losses in the technology sector and rising concerns regarding investments in artificial intelligence, leading various investors to liquidate their gold holdings to cover trading margins. Alongside gold, precious metals such as silver, platinum, and palladium also saw declines.
Jewelers Navigate Local Market Challenges
In Morocco, the indicative price for raw 18-carat gold has decreased to approximately MAD 1,020 per gram, reflecting a drop of MAD 17, or 1.64%, from the previous closing price. However, industry professionals have indicated that the domestic price reduction is significantly less than what is occurring internationally, estimating that the local market could theoretically see a reduction of around MAD 70 per gram if the global trend continues. Local jewelers have emphasized that international gold quotations do not automatically dictate local prices, as these are influenced by available inventory, market demand, and the pricing strategies of suppliers.
Sofiane, a prominent gold trader based in Rabat, noted that the initial decline in prices can be attributed to sellers seeking immediate liquidity in the face of falling international prices. He observed that some gold holders were willing to accept a reduction of approximately MAD 20 per gram to mitigate the risk of further losses should prices continue to decline.
The current market climate is characterized by weak demand for jewelry, largely due to reduced purchasing power and limited cash availability among consumers. Sofiane remarked on a significant slowdown in conventional cash purchases, with many transactions now involving customers exchanging older pieces for newer designs while only paying minimal amounts to cover manufacturing costs. The timing of the weekends has further contributed to delays in adjusting domestic prices, although he anticipates that the effects of the global price decline could become more pronounced in Moroccan markets within the next two to three days.
Industry estimates suggest that if international weakness persists, domestic gold prices could decrease by an additional MAD 20 to MAD 30 per gram by midweek. Such a decline would translate into a MAD 20,000 reduction in the value of one kilogram of gold, potentially placing significant pressure on jewelers holding high-value inventories. Despite expectations for some seasonal demand for lightweight jewelry ahead of New Year’s celebrations, traders remain cautious, predicting that any recovery in sales will likely be limited due to the overarching slowdown in the market.
As reported by en.hespress.com.
