Record gold price squeezes Moroccan jewellery sector

Amid rising geopolitical tensions and economic instability, gold has soared in recent weeks to record highs of over $5,000 an ounce.

The precious metal is seen as a safe-haven asset during these uncertain times, but the price surge is weighing heavily on the Moroccan market.

Jewellers and artisans are struggling to maintain their margins, with many already forced to close shop as customer numbers dwindle.

Gold trader, Saad Kamar, says there are several factors behind the global rise in the price of the precious metal.

"Most notably supply and demand, as we see that some countries are purchasing gold in large quantities,” he says.

“Strategic factors also play an important role, particularly geopolitical tensions and the decline of the US dollar within the international monetary system.”

The precious metal extended its record-breaking rally on Thursday putting it on track for its best monthly performance since 1973.

Traders and investors are closely monitoring the situation, with the World Gold Council saying the surge is impacting the demand for gold jewellery worldwide.