Gold purchases surged in Iran during the second quarter of the year, marked by the country’s 12-day conflict with Israel, the World Gold Council said in a report released Thursday.

Despite high prices, the overall volume of gold sales rose 20 per cent compared to the same period last year, the council said, adding that demand for gold coins and bars is now at its highest level in six years.

Worldwide demand for gold coins and bars fell six per cent in the second quarter over the previous three months, the report said.

“Iran was the outlier–– consumers bought gold jewellery as a proxy investment, pushing demand in the quarter up 12 per cent year on year,” said council analyst Louise Street.

Worldwide demand for jewellery fell 14 per cent over the same period, though the value of the purchases rose 21 per cent. Street said consumers were “pushing their budgets” as they seek a safe investment in the global economic uncertainty.

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The showdown over US tariff demands and geopolitical tensions that maintained gold prices, especially for gold-backed investment funds, in the first quarter kept up the metal’s value as an investment into the April-June quarter, Street said.

AFP