Gold prices remain volatile as they fluctuate between recovering this year’s losses and returning to an upward trend. The price of an ounce of gold closed at $4,538 and reached that level again at the market opening.

Price Fluctuations Throughout the Year

The decline in gold prices began earlier this year after reaching a high of $5,597. A sharp correction followed, pushing prices down to a low of $4,382.

Political Conflicts and Their Impact on the Market

At the onset of the U.S.-Israeli war with Iran, the dynamics of the gold market shifted as attention moved away from the precious metal and focused on developments within the broader financial market.

Energy Crisis Changes Gold’s Role for Investors

With the expansion of the energy crisis and the losses suffered by investors, gold shifted from being viewed as a safe-haven asset to becoming a source of liquidity for companies, capitalists, and investors.

This occurred as investors sold what is often considered “money saved for a rainy day” to protect their capital and businesses from the effects of the crisis.

Forecasts for Future Prices and Capital Flows

However, banks and financial institutions continue to maintain that gold still has room for another upward trend before the end of the year.

They believe that with the end of the war in the Middle East, the yellow metal will resume its upward trajectory and reach a new record high of $6,000 per ounce.

According to the “Gold Price” website, more than $260,440 entered the gold market over the past six months, while more than $115,000 was withdrawn in just one month, representing a decline of 2.49%.

Economic Factors and the Federal Reserve’s Influence

Accelerating inflation in the United States and rising yields have put pressure on gold prices, but continued purchases by central banks have helped limit losses.

At the same time, the possibility of interest rate hikes by the Federal Reserve has kept the price of an ounce of gold below the $5,000 level.

J.P. Morgan’s Assessment of Market Conditions

Yuexuan Tang, Head of Interest Rate and Asian Currency Strategy at J.P. Morgan Private Bank, stated that the developments seen in the gold market are not new and mirror the situation in 2022, when gold prices remained stable despite rising bank interest rates.

Gold Prices in Kurdistan Region Markets

The gold market in the Kurdistan Region is also experiencing volatility, influenced by global gold prices and fluctuations in the value of the dinar.

Following the Eid holidays, gold markets reopened with prices as follows:

• Price of one mithqal of 24-karat gold: 1,102,000 dinars
• Price of one mithqal of 21-karat gold: 965,000 dinars
• Price of one mithqal of 18-karat gold: 827,000 dinars