Baghdad: Economic expert Dhurgham Muhammad Ali has identified the reasons behind the rise in gold prices in the Iraqi market, pointing to economic fluctuations in global currencies and a decline in economic performance as key factors driving investors towards gold as a store of value.

According to National Iraqi News Agency, Muhammad Ali explained that global economic fluctuations have rendered currencies an unsafe haven, prompting both investors and central banks to shift part of their dollar reserves to gold. This shift has led to an increase in global gold prices, impacting Iraq as well. Additionally, restrictions imposed by the Central Bank, particularly those related to anti-money laundering standards, have pushed money launderers to withdraw gold from local markets rather than importing it.

Ali further elaborated on the pressures faced by local gold markets, which have seen a significant depletion of goldsmiths’ reserves and delays in replenishing gold supplies. The slowdown in global economic growth has reinforced the appeal of holding onto gold, with speculators rapidly moving to purchase it for potential profits. As a result, the upward trend in gold prices is expected to persist due to the challenges associated with replenishing gold stocks.

The recent surge in gold prices has been evident in local markets across Baghdad, with both foreign and Iraqi gold experiencing unprecedented price increases. The selling price for a weigh of 21-karat Iraqi gold has reached 810,000 dinars, and the purchase price is at 800,000 dinars. Meanwhile, Gulf gold prices in goldsmith shops range between 845,000 and 855,000 dinars per weigh.