Sudanese advisor identifies the reasons for the rise in gold prices in Iraq and the world

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[size=52]Sudanese advisor identifies the reasons for the rise in gold prices in Iraq and the world[/size]

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05-24-2024
Adviser to the Prime Minister, Mazhar Muhammad Salih, on Friday, summarized the reasons for the rise in local and foreign gold prices in Iraq, while indicating the existence of a direct relationship with the official dollar exchange rate and on the central stock exchange.[/size]
[size=45]Saleh wrote, in an article, that “the dollar in the secondary market is gradually declining relative to the official exchange rate, and despite this, we find that there is a gradual rise in gold prices in the local market,” explaining that “gold imports are financed at the fixed official exchange rate.” For the dinar against the dollar, through the Central Bank platform, at the price of 1,320 dinars per dollar.[/size]
[size=45]According to the Sudanese advisor for financial affairs, geopolitical tensions around the world, especially the war in Ukraine and others, have brought about major developments in the gold hedging policy on the part of some central banks in the world, which constituted an unprecedented rise in global demand for gold and led to a rise in its prices in the markets. Global, and here it is noted that “the external factor is the basis for the rise in the price of an ounce of gold in the local market.”[/size]
[size=45]He pointed out that “international financial institutions have issued expectations about the continued rise in gold prices in the coming months, and the expectations come despite the current strength in the levels of the US dollar, which is trading at its highest levels in 5 and a half months according to the dollar index, in addition to the high US government bond yields at The highest level in 5 months in light of expectations that the US Federal Reserve is on its way to keeping interest rates high for a longer period of time, which is supposed to represent negative pressure on gold prices.”[/size]
[size=45]The Prime Minister’s advisor continued: “But the strength of global demand for gold as a safe haven in light of the current geopolitical uncertainty, coupled with expectations that global central banks will continue to increase their gold reserves, has led international financial institutions to expect further gains in gold prices during the remainder of the year.” 2024.”[/size]
[size=45]He believed that “adopting a global gold reserve system at global market prices for the yellow metal will make the demand for gold grow and rise with the growth of trade and the global economy, and if countries continue to hedge their reserve currencies with gold at open gold prices that are restricted to production and the limited global supply of gold in the face of open demand, it will generate a monetary system for them.” At a high exchange rate, it may hinder their commercial competitiveness as countries that are hedged with gold and determine their exchange rates with the yellow metal.”[/size]
[size=45]Saleh concluded by saying: “Unless these groups adopt a fixed, moderate and competitive official price for gold itself, their competitive capabilities in their international trade with countries of the world will be seriously threatened,” concluding his speech by saying: “Here gold will be a double-edged sword at the same time, so caution should be given.” From the policies of commercial gold in establishing a monetary system on its own.”[/size]
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