Gold Market Volatility Grips Yemen as Price Fluctuates Despite Annual Gains
Sana’a, Yemen - The Yemeni gold market is experiencing significant volatility, with the price of one ounce reaching approximately 990,253 Yemeni riyals – equivalent to six months’ salary for a government employee – after a recent daily drop of 1,561 riyals.this comes despite a 46% increase in gold prices over the past year and a more than doubling of value – a 108.2% rise – over the last five years. The rapid shifts are fueling both anxiety and opportunity amongst Yemenis traditionally reliant on gold as a safe haven during times of economic and political instability.
The fluctuations reflect deep uncertainty within the Yemeni economy, exacerbated by local currency devaluations, global inflation, and ongoing political unrest. While the market stabilized on Friday following the decline, experts anticipate a continued upward trend in the long term, drawing comparisons to the global gold boom. This has prompted a cultural shift in savings habits, with many now turning to gold as an choice to traditional bank deposits.
Historically, Yemenis have sought refuge in gold during crises, dating back to the 1970s and including the 2008 global financial crisis. The current situation is creating a divide between investors who see a “golden opportunity” and those who fear a potential price bubble.
“the market is witnessing unprecedented volatility,” noted one observer, highlighting the precariousness of the current climate.
Yemeni families are caught in a state of anticipation, hesitant between buying and selling as they monitor daily price updates. Financial advisors are urging citizens to closely track gold prices and seek expert consultation to avoid ill-considered investments.
