SINGAPORE, March 18 — Gold retailers in Singapore are increasing inventories as demand for the precious metal rises amid the ongoing crisis in the Middle East and shifting interest rate expectations.

As reported by The Straits Times (ST), bullion dealers, jewellers and pawnshops said purchases of gold bars, coins and jewellery have surged in recent weeks, alongside some interest in silver and a rise in customers trading or cashing in older items, with younger buyers also entering the market.

“We have seen more buyers than sellers over the past year, but we also are beginning to see more sellers entering the market, which is typical after strong price moves,” David Mitchell, founder and managing director of Indigo Precious Metals told ST.

“In the near term, price action is being driven primarily by geopolitics and interest rate expectations – if the current conflicts expand or key supply routes remain disrupted, the market may remain elevated longer than many expect,” he added.

Mitchell said demand at his firm has more than doubled in 2026 compared with the same period last year.

Gold prices have fluctuated sharply, reaching a record US$5,589.38 per ounce on January 28 before retreating and later rebounding above US$5,300 in early March following US and Israeli strikes on Iran, amid broader volatility linked to oil prices and inflation expectations.

Silver Bullion founder Gregor Gregersen said sales of gold and silver bullion surged about 350 per cent year-on-year in the 12 months to March 1, driven largely by heavy buying during price dips after a late-January correction.

He added that while geopolitical tensions are supportive of gold, some investors are prioritising reducing exposure to riskier assets, as the firm expands its storage capacity to 2,500 tonnes with new vaults in Changi South.

ValueMax managing director Yeah Lee Ching said the pawnbroker recorded a “noticeable increase” in gold buying, particularly for London Bullion Market Association (LBMA) bars and 916 jewellery, with revenue rising to US$425 million in 2025, and plans to significantly boost its stock of PAMP Suisse bars.

SK Jewellery Group’s Angelina Lau noted growing trade-in activity as customers exchange older pieces bought at lower prices for new designs or multiple items, while the firm monitors demand trends amid geopolitical uncertainty.

According to ST, industry players said demand spans a wide demographic, with younger consumers increasingly viewing gold as an investment asset, though middle-aged and older buyers still dominate due to greater financial capacity.

Individual investors cited long-term value preservation and global economic uncertainty as key motivations, with some expecting further price gains if monetary easing coincides with continued geopolitical instability.