Iraq PM's financial adviser says US interest rates drive gold and dollar moves

BAGHDAD, Iraq — Iraq's financial adviser to the Prime Minister, Mazhar Mohammed Salih, said U.S. interest rates and the strength of the dollar are among the most decisive factors shaping global gold prices. Speaking on the relationship between U.S. monetary policy and precious metals, Salih said any change in the Federal Reserve's policy direction directly affects gold's appeal to investors. Salih said higher U.S. interest rates push investors toward bonds and dollar deposits, reducing demand for gold, which does not offer regular income, and pulling global prices lower. A stronger dollar, he added, makes gold purchases more expensive for investors outside the United States, reinforcing the downward pressure. Salih noted that the Fed has kept its policy rate in the 3.50–3.75% range and that markets are watching for the next direction. He said expectations of a possible rate cut could support gold prices even before an official decision is announced. Salih also said Iraq is a net importer of gold and is directly exposed to global price movements, while cash dollars in the local market play an alternative role as a store of value.