World Gold Council: Demand for Gold Bars and Coins in Iran Will Remain Strong

The World Gold Council, the international trade association for the gold industry based in London, stated in its latest report that "the intensification of geopolitical tensions" is one of the factors driving Iranian investors to purchase more gold bars and coins for investment, despite the unprecedented low prices of gold. The report indicates that from April to June of this year (Farvardin to Khordad), investment demand for gold bars and coins in Iran has "increased by 11 tons." The World Gold Council noted that due to continued high inflation, escalating geopolitical tensions, and a lack of alternative investment options, it expects gold investment in Iran to remain strong. Data from the council shows that from January to March of this year (Dey to Esfand), purchases of gold bars and coins for investment in Iran reached 12 tons, accounting for nearly half of all investments in gold bars and coins in the Middle East, which totaled 26 tons. The World Gold Council's report for the first quarter of 2024 states that Iran, the largest market for gold bars and coins in the region, is witnessing sustained healthy demand against the backdrop of increasing regional tensions. Earlier on August 17, gold prices reached their highest level, approximately $2,509 per ounce, marking a 21.39% increase since the beginning of the year. In early Khordad, analysts from UBS, a Swiss investment bank, predicted that gold could reach $2,600 per ounce by the end of this year and $2,700 per ounce by next summer. The dollar has reached the threshold of 62,000 tomans, and a heavy decline in the stock market continues. Reports indicate that the UAE is the main destination for the annual smuggling of billions of dollars worth of gold from Africa, and strikes and closures of gold markets continue in several cities in Iran.