Iraq gold prices on Thursday, driven by growing tensions in the Middle East and a weaker U.S. dollar. As global uncertainty increased, more investors turned to gold, seeking a safe place for their money.
Spot gold climbed 0.7%, reaching $3,375.06 per ounce. U.S. gold futures jumped 1.5%, hitting $3,395. This surge marks a strong day for the precious metal, showing renewed investor interest.
A key factor behind this rise was the decline in the U.S. dollar index. The dollar dropped to its lowest level in nearly two months. Since gold is priced in dollars, it became cheaper for buyers using other currencies. This made gold more attractive and helped push prices higher.
One market analyst said that the weaker dollar was a strong driver of gold buying. He explained that breaking the $3,346 resistance level caused a wave of technical buying. Many traders acted quickly to take advantage of the breakout.
The rising tension in the Middle East also played a role in boosting gold prices. U.S. President Donald Trump announced that American personnel were being moved out of the region. This step raised concerns of potential conflict, especially with Iran. As a result, investors rushed to buy gold as a safe-haven asset.
In the United States, inflation data came in lower than expected. Gasoline prices dropped, which helped keep inflation down. This news increased the chances that the Federal Reserve will cut interest rates. Lower interest rates often support gold prices, making them more appealing than interest-bearing investments like bonds.
Some analysts now expect the Fed to cut rates by 50 basis points before the end of the year. The market sees this move as a possible boost to the economy, and gold prices may continue to benefit if rates fall.
Trade talks between the U.S. and China also influenced markets. Trump stated that both countries had agreed on a framework to avoid more tariffs. He mentioned that he might extend the deadline for trade discussions, though he does not expect to need that extension.
Other precious metals also saw gains. Spot silver rose 0.4% to $36.38 per ounce. Platinum gained 1.3%, reaching $1,272.50, staying near its highest level in over four years. However, palladium slipped 1% to $1,068.92.
The Iraq gold market closely follows global price trends. As international events impact investors worldwide, Iraq’s buyers and sellers respond quickly. With gold prices rising, local demand could continue to grow in the short term.