Gold speculation in the Iraqi market... What is Iran's involvement?
Amid sharp fluctuations in precious metals markets, the global price of gold has witnessed record jumps followed by sudden declines, keeping investors and observers in a state of constant anticipation of the consequences of this historic rise.
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While an ounce of gold recently surpassed the $3,400 barrier, it then fell back to below $3,330, driven by major political and economic shifts, most notably the easing of trade tensions between the United States and China, which economists consider an early sign of the beginning of the global gold bubble's bursting.
These shifts were not limited to international markets; they quickly found their way to the Iraqi market, where they were reflected in gold prices in jewelers' shops in Baghdad, Erbil, Basra, and other governorates.
In Erbil, for example, the price of a gram of 21-karat gold rose from 122,000 dinars to over 124,000 dinars in just two days. This is an unusual rate in the local market and illustrates the extent of the pressure on gold as an alternative savings instrument amid declining confidence in the dollar as a safe store of value.
Bubbles Waiting to Burst
In turn, economic researcher Ali Daadoush asserted that “the dollar and gold in the world in general, and in Iraq in particular, are a bubble waiting to burst.”
He added to the Iraq Observer that “despite gold’s stability in times of stability and crises, the bubble is bound to burst in the near and medium term,” noting that “the sign of the bursting on the global level will be the US-China agreement and the easing of the trade war, while in Iraq, it will be the signs of an Iranian-US agreement and the shift of speculation from the dollar to gold and vice versa.”
Daadoush explains that the current decline in the dollar exchange rate in the Iraqi parallel market is linked to several interconnected factors, most notably "the fluctuations in the Iranian currency as a result of the ongoing negotiations, which directly impacts the import of goods from Iran, in addition to the increased supply of dollars by the Central Bank of Iraq."
According to indicators, the rise in gold prices has placed new pressure on Iraqi citizens, who have long resorted to gold as a safe haven, especially during periods of economic and political tension.
With the decline in market confidence in the Iraqi dinar and the absence of clear indicators of a stable dollar exchange rate, it appears that gold speculation will continue, driven by the desire of individuals and institutions to preserve the value of their money, even if this speculation is the spark that accelerates the impending bursting of the bubble.
The Prime Minister's Financial Advisor talks about gold demand and prices.
The Prime Minister's financial advisor, Mazhar Mohammed Salih, explained the reasons for the increased demand for gold in Iraq, as well as its impact on global prices.
Saleh stated that "local gold is one of the wealth havens most affected by external or international factors and shocks, as it is a commodity imported from gold vaults abroad. The global price of gold exceeded the $3,200 per ounce barrier in April 2025, affected by geopolitical tensions, especially between the United States and China, or the so-called trade war issue represented by the escalation of the mutual tariff war between various countries of the world and its direct and indirect effects on inflation trends and expectations in the global economy."
He pointed out that "this coincided with indicators of the oil asset cycle, the downward trend in global oil prices, as well as the increasing demand for the yellow metal by central banks and investors seeking a safe haven for wealth around the world, as gold is undoubtedly the best store of value." He explained that "the price of gold, which has witnessed a significant and continuous rise, despite its fluctuations towards the decline, has maintained its high price. For example, the price of one ounce on April 17, 2025, reached approximately $3,321.89, after previously reaching a new record high of $3,357.40 per ounce."
Saleh said, "The opening of the local gold market to the global market and the impact of global gold prices on our country's supply has become an immediate reflexive issue. Until the local gold market stabilizes again, it may take a long time to adapt again." He pointed out that "the short-term jumps in gold prices cast a shadow over the tendencies of individuals in our country and the behavior of some to hedge their investments in the yellow metal."
He pointed out that "the demand for gold in Iraq is a traditional means of preserving value, which leads to its purchase as a normal hedge, especially for those with cash surpluses, with the aim of profiting from the external price factors affecting the fluctuations in the international economy, and the impact of this on the level of global prices, and the repercussions of this on thinking about re-diversifying the wealth portfolios of some of them, or according to their beliefs and traditions in investing, preserving the value of their personal financial wealth, or speculating."
He explained that "if the goal of importing is a safe investment, it is preferable to monitor global and local markets to make informed decisions, and to properly diversify their investment portfolios and not rely entirely on a single investment vehicle to preserve value, as gold is also subject to decline. It is also preferable to consider other national investment options to diversify their investment portfolios, especially investing in interest-bearing sovereign government bonds currently offered to investors through the Iraqi banking system."
Foreign Minister arrives in Washington
Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein arrived in Washington, DC, on an official visit.
A statement by the Ministry of Foreign Affairs received by the Iraqi News Agency (INA) stated that “Deputy Prime Minister and Minister of Foreign Affairs,
Fuad Hussein, arrived in the US capital, Washington, on an official visit during which he will hold a series of bilateral meetings with a number of senior
officials in the US administration.”
The
statement added that “this visit comes within the framework of strengthening bilateral relations between the Republic of Iraq and the United States of America, and discussing ways to develop joint cooperation in the political, security and economic fields, as well as discussing regional and international issues of common interest.”
The statement continued, “During his visit, the Minister is scheduled to meet with a number of officials in the US State Department, most notably Marco Rubio, US Secretary of State, in addition to holding meetings with prominent political and economic figures.”
Fuad Hussein holds meetings with US officials in Washington.
Fuad Hussein to his American counterpart: Iraq has begun importing electricity from other countries.
A strong, stable, and sovereign Iraq, free from malign influence, is vital to the stability of the region and the preservation of U.S. interests and opportunities there.
— Secretary Marco Rubio (@SecRubio) April 25, 2025
Had a valuable exchange with Iraqi Deputy Prime Minister and Foreign Minister Fuad Hussein. I commend his… pic.twitter.com/NPrqZU1e3x
Baghdad calls on Washington to reconsider travel warnings, while the latter praises billion-dollar agreements.
Iraqi Foreign Minister Fuad Hussein called on the United States on Friday to reconsider its security warnings regarding travel to Iraq.
This came during Hussein's meeting with his US counterpart, Marco Rubio, in Washington.
Hussein said, "The security situation in Iraq is good and represents an additional factor attracting foreign investment. Some European countries have reconsidered their security assessments in Iraq," according to a statement issued by the Iraqi Ministry of Foreign Affairs.
He stressed the importance of enhancing security cooperation and information exchange in the fight against terrorism, and praised Washington's role as the leader of the international coalition against ISIS.
Regarding developments in Syria, the Iraqi Foreign Minister called for the launch of a comprehensive political process that respects the rights of all Syrian components and contributes to strengthening regional stability. He noted that Syrian stability has a positive impact on Iraqi security, and that the underlying causes of concern in Syria must be addressed.
He also called for caution in dealing with prisons controlled by the Syrian Democratic Forces (SDF), which hold approximately 10,000 of the most dangerous ISIS members.
On the economic front, the minister emphasized that Iraq has begun diversifying its energy sources and reducing its reliance on imported gas. He also called on American companies to increase their investments in the country.
The statement continued: "Both sides expressed optimism about the future of relations, and Fuad Hussein praised the role of the United States and its leadership of the international coalition to combat terrorism."
For his part, Secretary Rubio affirmed his country's commitment to supporting stability in Iraq and praised the joint efforts in the war against ISIS.
In a similar vein, according to the statement, the two sides discussed "opportunities to strengthen economic and trade partnerships. They commended the recent visit of a delegation of American businessmen and private sector leaders to Iraq, and the opportunity it provided to enhance economic cooperation between the two countries in the public and private sectors."
For his part, a US State Department statement stated that the two ministers discussed the importance of Iraqi sovereignty in achieving regional security and stability. The two ministers commended Iraq's efforts to promote regional calm and constructive dialogue.
Ministers Rubio and Hussein also discussed opportunities to expand economic cooperation and increase trade and investment between the United States and Iraq.
Rubio praised Iraq for hosting the first trade mission appointed by the U.S. Department of Commerce to Baghdad earlier this month, resulting in billions of dollars in agreements with American companies.
Expert: Restarting the Kirkuk-Banias pipeline is a strategic step to strengthen Iraq's oil position.
In a press statement, Al-Nazzal pointed out that "the line has witnessed multiple political fluctuations since the tripartite aggression against Egypt, through nationalization operations, the Iran-Iraq War, the first and second Gulf Wars, and finally the international coalition's war against ISIS."
He added that "the pipeline is currently gaining significant importance for Iraq, strengthening its position among the world's largest oil producers, with more than 3 million barrels per day." He explained that it enables Iraq to avoid the risks of relying on the Turkish Ceyhan pipeline, which is affected by shifting interests and political balances with the Kurdistan Regional Government, or disturbances in the Red Sea when exporting through the ports of Basra. Meanwhile, the Syrian pipeline remains the least expensive and fastest option for reaching European markets.
Iraq has begun practical steps to restart the oil pipeline extending through Syria to Mediterranean ports, sending an official government delegation to Damascus to discuss rehabilitation mechanisms, according to a statement issued by the Prime Minister's media office.
Through this move, the Iraqi government seeks to open new routes for its oil exports amid escalating regional and international challenges affecting energy flows.
The Minister of Industry activates the partnership contract with the Korean Kia and reviews a model of an electric car in preparation for its production in Iraq.
Minister of Industry and Minerals Khaled Battal Al-Najm viewed a modern model of an electric car from the Korean company Kia, as part of the partnership agreement concluded between the General Company for Automotive and Equipment Manufacturing, affiliated with the Ministry, and the Korean company Kia, in preparation for transferring the technology to manufacture these cars and starting their production in Iraq .
In a statement received by IQ , Al-Najm said , " This step is part of his strategy aimed at developing the industrial sector and keeping pace with modern technology in the automotive industry, in line with the government's trend towards clean energy by activating the partnership contract with the Korean company Kia, which has been suspended for years, and expanding its scope to produce electric cars ."
He emphasized that "the partnership with the Korean company Kia will contribute to the transfer of modern technology to Iraq and the implementation of specialized training programs to qualify Iraqi personnel in manufacturing and assembly techniques. It will also contribute to building an industrial base by establishing new production lines to international standards and developing the industrial infrastructure ."
The General Company for Automotive and Equipment Manufacturing confirmed that "assembly and production of electric cars will begin by the end of 2026, after the completion of the installation and operation of the production lines and the training of the company's engineering and technical personnel to produce these environmentally friendly cars, which contain eight airbags, a front and rear collision avoidance system, a cruise control system, and a display screen that includes the instrument panel, entertainment system, and climate control ."
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