Gold prices surge in Iraq to record highs amid global weak dollar, social inflationary pressure
Shafaq News/ An Iraqi expert on Monday attributed the skyrocketing prices of gold in the country to weakened U.S. dollar and social inflationary pressure ahead of the Christian holidays.
Delir Tahir, a spokesperson for the goldsmiths market in al-Sulaymaniyah, attributed the surge to a confluence of factors. "International conflicts and wars, coupled with the decline in the value of the U.S. dollar, are driving safe-haven demand for gold," he told Shafaq News Agency. "Additionally, rising prices for all other metals and the upcoming Christian holidays in Iraq and Kurdistan are contributing to the surge."
Tahir confirmed that the price of a mithqal (roughly 5 grams) of 21-karat gold, excluding craftsmanship costs, has reached a record $315 (around 463,000 Iraqi dinars). The price of 18-karat gold has also climbed, reaching $270 (approximately 370,000 dinars) per mithqal.
"Just a year ago, the price of a kilogram of gold was $37,000. Today, it costs nearly $72,000," Tahir said added.
However, the record prices have dampened market activity. "The market has slowed down considerably," Tahir explained. "It is mainly due to the delays in salary reimbursement."
The price surge extends beyond al-Sulaymaniyah. In the Iraqi capital, Baghdad, gold prices also witnessed a rise on Monday. Conversely, Erbil, the capital of the Kurdistan Region, saw no change in prices.
A correspondent in Baghdad reported that wholesale markets on al-Nahr Street displayed a selling price of 467,000 dinars for a mithqal of 21-karat gold (from the Gulf, Turkey, or Europe) and a buying price of 463,000 dinars. The price of domestically produced 21-karat Iraqi gold reached 437,000 dinars for selling and 433,000 dinars for buying.
Goldsmith shops across the country mirrored the trend. The selling price of a mithqal of 21-karat Gulf gold ranged from 470,000 to 480,000 dinars, while Iraqi gold of the same karat sold between 440,000 and 450,000 dinars.
Erbil, however, maintained its previous pricing structure. The city reported a selling price of 530,000 dinars for a mithqal of 24-karat gold, 465,000 dinars for 21-karat, and 400,000 dinars for 18-karat.
