Iraq: Higher gold prices expected: Three key factors

Shafaq News – Baghdad

Multiple factors are expected to push gold prices higher, including the metal’s link to the US dollar, interest-rate levels, and global geopolitical conditions, according to Mudhir Mohammed Saleh, the Iraqi prime minister’s adviser for economic affairs. 

Speaking to Shafaq News, Saleh ruled out any significant or sustained decline in gold prices in the short term—over the coming weeks or months—or even in the medium term, unless major shifts occur in those drivers. “Such changes could include a sharp and unexpected rise in US interest rates, a notable easing of geopolitical tensions, or a broad strengthening of the dollar.”

He said gold remains an important reserve asset for Iraq, serving as a safeguard “against inflation or in the event of a drop in the dollar’s value,” and helping the country manage future surpluses and finance key investments.

Saleh added that gold holdings strengthen Iraq’s position in international negotiations and provide greater flexibility in managing reserves, reducing reliance on the dollar. Any increase in Iraq’s gold reserves, he said, “should be seen as a strategic signal that the country is moving toward diversifying its financial assets.”

According to the World Gold Council, Iraq currently holds about 170.9 tons of gold, ranking 29th globally and fourth among Arab states in terms of reserves.