Soaring gold purchases in Iran during heightened regional tensions have defied global trends, according to a Thursday report from the World Gold Council. The country’s 12-day conflict with Israel earlier this year coincided with a 20% annual rise in gold sales volumes between April and June, even as prices climbed to historic levels. Demand for gold coins and bars in Iran reached a six-year peak, contrasting sharply with a 6% quarterly decline in global demand for these assets.
“Iran stood out as the exception, with consumers turning to gold jewellery as an alternative investment,” noted Louise Street, a senior analyst at the World Gold Council. Local demand for gold jewellery rose 12% year-on-year, she added, reflecting a broader shift toward safe-haven assets amid economic instability. This surge occurred despite a 14% drop in global jewellery consumption, though the total value of such purchases still rose 21% due to elevated gold prices.
Street attributed the trend to investors “stretching their budgets” to secure tangible assets during geopolitical and economic uncertainty. Persistent tensions, including U.S. tariff disputes and ongoing conflicts, helped sustain gold’s appeal as a stabilizing force in portfolios. Gold-backed investment funds retained their allure, buoyed by high prices that carried over from the first quarter.
The report highlights gold’s dual role as both a luxury item and a financial safeguard, particularly in volatile markets. While many nations saw reduced interest in physical gold, Iran’s demand spike underscores how regional crises can reshape consumption patterns. Analysts suggest the metal’s resilience as a store of value continues to outweigh cost concerns for risk-averse buyers.
Globally, the precious metal’s price trajectory remains tied to macroeconomic sentiment, with investors weighing inflation risks, currency fluctuations, and central bank policies. In Iran, however, immediate geopolitical pressures appear to have accelerated a turn toward gold, reinforcing its status as a crisis-resistant asset.
This analysis by the World Gold Council draws on data from trade organizations, financial institutions, and market surveys, providing a snapshot of shifting investment behaviors during a period of heightened global unpredictability.
