Gold prices begin to fall after reaching record highs, jewelers welcome trend amid reduced purchasing power

After months of record-high prices, the gold market is seeing a reversal, with prices now trending downwards. Hatem Ben Youssef, president of the Jewelers' Union Chamber, stated on Friday, June 12, 2026, that this decline is welcomed by professionals. He explained that excessively high prices ultimately harm the industry by making gold less accessible to many consumers, especially given the limited purchasing power in Tunisia. The price of an 18-carat gold gram had reached 380 dinars before correcting to 280 dinars, and is currently around 295 to 297 dinars. Ben Youssef noted that jewelers are not interested in price increases because they negatively impact sales. While the market is experiencing a progressive decline, consumers will not see an immediate reflection of this in store prices. This is because the selling price of jewelry includes the acquisition cost of raw materials and manufacturing. Some products exceeded 500 dinars per gram at the peak, with jewelers' profit margins remaining limited at about 2.5%. Some merchants are even selling without a profit margin to clear high-priced stock and replace it with more advantageously priced acquisitions. Once this transition is complete, profit margins will be restored, and more accessible prices will be offered to consumers. If the trend continues, an 18-carat gold gram could sell for 400 to 420 dinars. The decline is dependent on international prices, which are sensitive to geopolitical and financial uncertainties. For Tu