Iran begins new ‘game’ over Gold, move could change world economy due to…

In recent months, Iran has taken a significant turn in its economic approach, focusing on gold as a key asset to counter US sanctions and financial instability. A Reuters report reveals that the country has dramatically increased its gold imports, viewing it as a safeguard against economic turmoil. The Trump administration’s “maximum pressure” policy imposed tighter sanctions, restricting Iran’s access to global financial networks and the US dollar. In response, Iran has shifted its reserves toward gold, using it as a stable alternative for trade and investment.

How much gold has Iran bought?

• By January 2025, Iran had imported 81 metric tons of gold—a 234% increase compared to the previous year.
• By February 2025, total imports had exceeded 100 metric tons.
• Currently, 20% of Iran’s foreign currency reserves are now held in gold.

Why is Iran buying so much gold?

1. Reducing dependence on the US Dollar – Due to sanctions, Iran has been cut off from the global payment network, making it difficult to trade in dollars. As a result, gold has become a safer and more stable alternative for international transactions.
2. Covering budget deficits – Despite raising taxes, Iran continues to struggle with economic instability. Gold is being used as a financial cushion to help manage its budget shortfalls.
3. Boosting local gold production – Iran is also planning to increase its domestic gold mining and production, ensuring long-term supply and economic security.

Will gold prices rise further?

The global demand for gold is already surging, pushing prices to record highs. Rising tensions between the US and Iran, along with broader economic uncertainties, are making gold an increasingly attractive investment worldwide. If this trend continues, gold prices are likely to climb even higher in the coming months.