Global media, dollar depreciation drive gold price surge, says head of Erbil Jewelers Union

Looking ahead, Wartey predicted that gold prices would likely continue to rise until the New Year, after which they could stabilize or even decline depending on several factors.

Gold adornments are on display at a goldsmith's shop in Baghdad, Iraq, Tuesday, April 16, 2019. Gold market prices has been stable over the past three years due to improved security in Baghdad. (Photo: AP/Hadi Mizban)
Gold adornments are on display at a goldsmith's shop in Baghdad, Iraq, Tuesday, April 16, 2019. Gold market prices has been stable over the past three years due to improved security in Baghdad. (Photo: AP/Hadi Mizban)

ERBIL (Kurdistan24) - The head of the Erbil branch of the Jewelers Union, Handren Wartey, attributed the recent surge in gold prices to several factors, including global media coverage, the depreciation of the US dollar, and increased physical gold purchases by countries.

In an interview with Kurdistan24 on Sunday, Wartey explained that the US Federal Reserve's decision to lower interest rates by 0.50 percent has contributed to the decline in the dollar's value against other currencies, making gold more attractive to investors.

Furthermore, he highlighted the significant physical gold purchases by various countries this year, measured in tonnes, which has further fueled demand and pushed prices higher.

Interestingly, Wartey also pointed to the influence of global media on gold prices, suggesting that extensive coverage has played a role in driving up demand.

Looking ahead, Wartey predicted that gold prices would likely continue to rise until the New Year, after which they could stabilize or even decline depending on several factors.

He specifically mentioned the release of key economic data on October 10th, including information on housing, agriculture, cars, and inflation. If this data favors the dollar, gold prices could fall; otherwise, they could rise further.

Wartey emphasized that gold prices in Kurdistan are closely tied to the global market and will therefore be influenced by these international trends.

Finally, he suggested that the upcoming US elections could also impact gold prices, noting that a potential Trump victory and his subsequent policies could have a significant effect on the market.

 

 

Further reporting was done by Kurdistan24's correspondent Lawin Omer