Gold prices in Syria’s local market saw a slight decline at the close of trading in the second week of May, directly affected by the global ounce price falling below the $4,600 threshold, amid inflation fears fueled by tensions in the Middle East.
According to the pricing bulletin issued by the General Authority for Precious Metals Management in Syria on the evening of Friday, May 15, the price of one gram of 21-karat gold, the most commonly traded among Syrians, reached 17,650 new Syrian pounds, equivalent to $127, for selling, and 17,250 new pounds, equivalent to $125, for buying.
The Syrian pound exchange rate against the US dollar on Friday stood at 136.7 new Syrian pounds, equal to 13,670 old pounds.
The official bulletin showed that one gram of 24-karat gold recorded 20,300 pounds for selling and 19,700 pounds for buying, while one gram of 18-karat gold reached about 15,150 pounds for selling and 14,600 pounds for buying.
The bulletin also set the selling price of one gram of raw silver at 355 pounds, equivalent to $2.55, and the selling price of platinum at 9,000 Syrian pounds, equivalent to $65, according to the authority’s official pricing.
Prices had recorded 17,750 pounds, equivalent to $131, for selling and 17,250 pounds, equivalent to $129, for buying at the start of the week’s trading on May 11, according to the authority’s official pricing.
The official bulletin showed that the global market price of an ounce reached $4,549 today, its lowest level since May 5, according to Reuters.
Link to Global Markets
The local decline comes as a direct result of gold prices in global markets falling to their lowest level in more than a week.
According to Reuters, spot gold fell by 2.3% to $4,541.91 per ounce, after earlier dropping during the session to its lowest level since May 4. Prices have fallen by 3.7% since the start of the week.
The agency attributed the decline to higher US Treasury yields and a stronger dollar, while inflation fears resulting from the conflict in the Middle East strengthened expectations of interest rate hikes, according to Reuters.
What Caused the Global Decline?
Global market analyses revealed several main factors behind the continued decline, foremost among them the sharp jump in US Treasury yields.
Edward Meir, an analyst at Marex, told Reuters that broad selling was taking place across the precious metals basket for several reasons, including the dollar’s significant strength today and the global rise in bond yields.
Meir noted that yields on 10-year US Treasury bonds rose to their highest level in nearly a year, significantly increasing the “opportunity cost” of holding non-yielding gold.
Meir added, “The Chinese side has not provided much help in resolving the dispute in the Middle East, and we are seeing crude oil move upward, which reinforces the inflation narrative, and this has been very negative for metals.”
Rona O’Connell, an analyst at StoneX, told The Hindu Business Line that “yields and the dollar are rising because of growing inflation concerns, partly caused by hostilities in the Gulf and supported by producer price index and consumer price index figures issued this week.”
According to an analysis by The Edge Malaysia, recent US inflation data showed that consumers and companies have begun to feel major increases in price pressures as a result of the war in the Gulf. This strengthened bets that the Federal Reserve will not cut interest rates this year.
Crude oil prices, which have risen by more than 40% since the start of the US-Iran war on February 28, have also caused global inflation to rise. This pushed traders to price in the possibility of interest rate hikes rather than cuts, weighing on gold’s appeal.
Will the Decline Continue?
While the current decline is pressuring prices, analysts believe the long-term outlook for the yellow metal remains positive, though uncertainty dominates the short term.
The Hindu Business Line quoted independent analyst Ross Norman as saying, “In the long term, the general mood remains constructive toward higher prices, but it can be said that gold is unreadable in the short term as uncertainty dominates news bulletins.”
In a related context, ANZ Bank lowered its year-end gold price forecast by $200 to $5,600 per ounce, noting that “inflation expectations, higher yields, and the strength of the dollar will continue to pressure prices in the near term,” according to The Edge Malaysia.
By contrast, Goldman Sachs still maintains a positive outlook, keeping its gold price forecast at $5,400 per ounce by the end of 2026, supported by continued purchases by central banks to diversify their reserves and expectations of interest rate cuts of 50 basis points.
Are Syrians Turning Away From Gold?
Locally, this price volatility is creating caution and anticipation in the behavior of Syrian buyers and savers.
The director general of the General Authority for Precious Metals Management, Musab al-Aswad, previously told Enab Baladi that fluctuations in gold prices in Syria, linked to the movement of the global ounce price, cause a decline in purchases of new gold jewelry. He said this pushes savers toward lightweight investment jewelry and bullion as a hedge, especially as individuals hold on to their savings and do not want to sell them under the current turbulent conditions.
Gold recorded its highest historical level in January 2026, when it touched the $5,608 per ounce threshold, before a sharp selloff pushed it below $4,500 last February.
Gold remains down by more than 13% since the start of the war on February 28, as markets cautiously monitor developments in global geopolitical and economic conditions.
At the same time, analysts still believe the path remains open for further gains as geopolitical and economic factors continue to support prices for the yellow metal, according to Fortune.