The decline in the value of the Iraqi dinar against the US dollar has increased gold prices in the Kurdistan Region. Economic experts say the weaker dinar has directly raised local gold prices. This increase came despite the closure of international stock markets.
Economic experts say the decline in value of the dinar caused the price of one mithqal of gold to rise by about 3,000 Iraqi dinars. They explained that exchange rate changes affect gold prices immediately. Gold is traded globally in US dollars.
Experts believe gold prices could continue to rise if the dinar loses more value. They also say the reopening of global markets on Monday may reveal the full impact of the recent agreement between the United States and Iran.
Investors often buy gold during periods of economic uncertainty and currency fluctuations. For this reason, a weaker local currency usually increases demand for gold. Higher demand can then push prices up even further.
Current figures show that one ounce of gold trades at $4,155 in international markets. Local gold prices in the Kurdistan Region have also increased.
One mithqal of 22-karat gold now sells for 961,000 Iraqi dinars. A mithqal of 21-karat gold costs 918,000 dinars. The price of 18-karat gold has reached 787,000 dinars per mithqal.
A mithqal of 14-karat gold now sells for 611,000 dinars. The price of 12-karat gold stands at 524,000 dinars. Meanwhile, a mithqal of 9-karat gold costs 393,000 dinars.
Analysts say exchange rate movements remain one of the main factors affecting local gold prices. Any further weakening of the Iraqi dinar could trigger another increase in gold prices across Kurdistan and Iraq.
Investors and consumers are closely watching currency markets and international developments. They expect these factors to determine the future direction of gold prices in the coming weeks.
