Gold purchases surged in Iran during the second quarter of the year, driven in part by a 12-day conflict with Israel, according to a report released Thursday by the World Gold Council.
Despite high global prices, gold sales in Iran rose by 20 percent compared to the same period last year. The report highlighted a six-year high in demand for gold bars and coins within the country.
“Iran was the outlier — consumers bought gold jewellery as a proxy investment, pushing demand in the quarter up 12 percent year on year,” said Louise Street, a senior analyst at the council.
Globally, demand for gold coins and bars dropped 6 percent from the previous quarter. Jewellery demand also fell 14 percent worldwide, although the total value of jewellery purchases increased by 21 percent, indicating consumers were stretching their budgets to invest in the precious metal.
Street added that ongoing geopolitical tensions and uncertainty surrounding U.S. tariffs helped sustain gold’s appeal as a safe-haven investment during the April to June period, continuing trends seen in the first quarter.