EghtesadOnline: Gold prices are relatively stable according to the head of Iran’s Specialized Gold and Jewelry Commission. Speaking on state TV, Mohammad Keshti-Aray said the clam is due the decline in the international price and demand for the yellow metal and currency rates.
Bahar Azadi gold coin was sold at 43 million rials ($302) on Thursday while the price of half and quarter coins were 21.1 million rials ($148) and 11.6 million rials ($81) respectively, IRIB News Agency reported.
Keshti-Aray put the global price of gold in the region of $1,223 per ounce.
The head of Tehran Gold and Jewelry Union Ayat Mohammad Vali told IBENA that ant real decrease in gold prices depends on regulation of the foreign currency market and the central bank should strive further to restore stability to the forex market that has seen more than its share of instability over the past six months, according to Financial Tribune.
Gold and currency markets have been particularly volatile in the past six months with the Iranian rial losing nearly 70% of its value against the US dollar and the gold coin soaring to a record high of 5 million rials.
Currency in Public Hands
Vice-chairman of the Majlis Budget Commission Hadi Ghavami says a huge amount of foreign currency is being kept in homes and the amount is increasing, IBENA reported.
Before the fluctuations in the forex market, at least $20 billion was owned by the people and “The fluctuations apparently increased the currency reserves in homes.”
It is forecast that an estimated $30 billion is held in private hands. “The reason behind public interest in buying and keeping currency lies in the profit they expect from the volatility in rates as well as shifting their assets to safer havens due to the tanking of the rial,” the MP said.
Regarding the people’s lack of trust in the banking system and the government, he said the government should channel the forex in public hands towards the banking sector and the stock market by nurturing trust. The lawmaker, however, did not say how the government should go about accomplishing this monumental task.