Gold prices drop sharply, reaching record low in past month

Nov. 12, 2024

ERBIL (Kurdistan24) - Gold prices experienced a significant decline at the start of weekly trading, dropping by $64 per ounce and reaching their lowest level in the past month.

The Kurdistan Region's markets also witnessed a decrease of 7,000 Iraqi dinars per mithqal.

As of Monday, Nov. 11, 2024, global gold prices settled at $2,619 per ounce, marking a $64 decrease in a single day.

In Kurdistan Region's markets, while gold was trading at 570,000 dinars per mithqal (21 karat) earlier on Monday, Dana Warti, spokesperson for the Erbil Goldsmiths Syndicate, told Kurdistan24 that current global prices would push the rate down to 563,000 dinars per mithqal.

"Following Donald Trump's success, the gold market in Kurdistan has seen increased activity," Warti explained.

"The market is divided: some traders are selling their gold fearing Trump's policies might cause further price drops, while others view this as a temporary decline and are buying gold," he added.

The strengthening of the US dollar against major currencies over the past three months is considered the primary factor behind gold's decline.

Trump's success in the US presidential elections has reduced market concerns about potential Federal Reserve interest rate cuts, leading to decreased demand for gold and other safe-haven assets.

This decline comes after gold reached a historic high of $2,790 per ounce late last month, driven by Federal Reserve interest rate decisions, US presidential election uncertainty, and ongoing Middle East tensions.

 The current market movement reflects the complex interplay between political events, monetary policy, and precious metal valuations in global markets.

Further reporting was done by Kurdistan24 Economy Desk reporter Yadigar Sadeeq.