Features|Business and EconomyGold fluctuations baffle Lebanese jewellers, gold marketAl Jazeera hit the streets of Beirut to talk to people who work with gold about the recent fluctuations.

Gold and Silver Price Fluctuations Impact Lebanese Jewellery Industry

In Beirut, Lebanon, the jewellery sector is experiencing significant challenges due to volatile gold and silver prices. As of Wed, Feb 3, 2026, gold prices have fluctuated between $4,600 and $5,595 per troy ounce (31.1g), settling around $5,000. Such fluctuations are causing uncertainty within the industry.

Since 2019, Lebanon has faced a severe economic and banking crisis, leading many Lebanese to invest in precious metals as a hedge against inflation. Gold, in particular, has been viewed as a stable investment, especially during periods of geopolitical or economic uncertainty. However, recent price instability has affected this perception.

The jewellery business in Lebanon is being adversely impacted by these price fluctuations. Many jewellers report a slowdown in operations as they grapple with the unpredictable market. The instability has led to hesitancy in buying and selling gold, complicating business transactions.

Industry analysts are divided on the reasons behind the rapid changes in gold valuations. Some attribute it to economic conditions and currency fluctuations, while others see it as a correction of overvaluation. Looking forward, some financial experts anticipate further increases in gold prices, potentially rising by 30% by the end of 2026.

Lebanon continues to navigate a financial crisis, marked by a significant depreciation of its currency and reliance on remittances. From 2020 to 2024, remittances averaged $6.38 billion annually, dropping to $5.8 billion in 2024. Trust in the banking system remains fragile, prompting many to consider gold as a safer investment option despite current challenges.

Based on reporting by Al Jazeera.