With cash shortages and a ruined banking system, Palestinians are turning to gold to hedge aginst financial uncertainty.
Israel’s blockade on the enclave has escalated to preventing cash from reaching or exiting Gaza.
“At the beginning of the war, gold prices were 10% lower than the global price per gram. Today, it is the opposite case. There has been a surge in demand as people have settled down a bit, and we hope that the crossings will open and that prices in the Gaza Strip will reach the same level as the global price,” said Mohammed Al-Ashqar, a jeweler.
Gold prices rallied again this week after falling the last couple of weeks. The metal hit an all-time record price of more than $5,600 per ounce in late January.
In Gaza, dealers believe prices can only go higher.
“Gaza is completely closed off from all directions. Before the war, we used to receive gold from the West Bank, Egypt, Dubai, and other places. The crossings were open, and gold could enter the Gaza Strip legally through the established channels. However, since the war began, and after more than 1,100 days of fighting, we have been living under a complete blockade of Gaza. As a result, no gold is currently entering the Gaza Strip,” said Abu Alaa Haboub, head of the gold traders syndicate.
At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom are selling their gold to buy essential goods.
“I came to buy gold because it provides a way to secure and preserve my money. Cash is not always readily available; banks may not always be open, and banking transactions can sometimes be unavailable. Therefore, I see buying gold as a form of [financial] protection for the future. Gold is globally recognised and accessible, allowing me to use it whenever needed, without the same concerns,” said Rama Hussein, a resident of Gaza city.
Palestinians use the Israeli currency, the shekel, for most transactions.
In 2024, inflation in Gaza surged by 230%, according to the World Bank. About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now.