Gold prices in Morocco have retreated sharply from record highs in recent weeks, but jewelers say the decline has done little to revive demand as rising living costs, weaker purchasing power and changing consumer habits continue to weigh on the market ahead of the summer wedding season.
Eighteen carat gold was trading around 1,050 dirhams per gram this week, down from peaks near 1,420 dirhams reached earlier in 2026, according to sector professionals and local market data.
The pullback mirrors broader movements in global markets, where gold prices have eased under pressure from a stronger dollar and uncertainty surrounding oil markets and geopolitical tensions.
But traders say lower prices are not translating into stronger sales.
“Customers are waiting rather than buying because they believe prices could fall further,” Idriss El Hazzaz, head of Morocco’s federation of jewelers, told Hespress. “The market remains sluggish despite the decline.”
The slowdown has become particularly visible ahead of Eid al Adha, traditionally one of the busiest consumption periods of the year. According to jewelers, many lower income households have instead turned to selling rings and small jewelry items to cover holiday expenses and rising food prices.
“At one point demand was focused almost entirely on selling, not buying,” El Hazzaz said, adding that wealthier consumers increasingly prefer international luxury brands or purchases made abroad.
Professionals say the sector is also being affected by shifting habits among Moroccans living overseas, long considered a key driver of jewelry sales during summer visits.
“The first generation of Moroccans abroad bought gold systematically. The third generation barely enters these markets anymore,” El Hazzaz said, pointing to higher travel costs and changing consumption patterns among younger expatriates.
The weakness in demand comes despite signs of stable supply conditions. Mohamed Morchid, head of the national association of jewelry craftsmen, said customs exemptions allowing licensed jewelers to import 24 carat gold bars duty free continued supporting local manufacturing activity.
At the same time, authorities have tightened oversight of the precious metals trade after record increases in global gold prices raised concerns over illegal bullion transactions and money laundering risks.
Sector representatives said regulators had stepped up controls in recent months, leading to a decline in unauthorized gold purchases and stricter enforcement measures targeting informal trading channels.
Jewelers say hopes for a recovery now depend partly on a strong agricultural season that could revive rural purchasing power after years of drought weakened spending across much of Morocco’s countryside.
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