Gold Coins Gain 32% in 3 Quarters in Tehran Market
EghtesadOnline: In the first three quarters of the current fiscal year that ends in March, average price of one Emami gold coin reached 44.097 million rials ($330), which was 32% higher compared to the same period last year.
According to the Central Bank of Iran, the Bahar Azadi coins registered 36% annual growth, with average price near 43.03 million rials, Financial Tribune reported.
The average price of a gold coin was 44.50 million rials in the ninth month (ended Dec 21) of the Iranian year up 10.5% and 19% compared to the month before and the corresponding period last year.
Ebrahim Mohammad Vali, head of Tehran Gold and Jewelry Union, expects a subtle increase in gold coins prices "mainly due to the supervisory measures taken by the Central Bank of Iran to control currency rates."
"Investors are showing more interest in gold products rather than melted gold," he said adding that trade in melted gold also requires some technical knowhow.
"Gold products are more profitable in the long term," he said.
Each Emami coin was traded at 50.71 million rials on Sunday, the Tehran Gold and Jewelry Union reported, up 480,000 rials or 1% compared to Saturday's close.
TGJU data also indicates more than 27% growth in the price of the Emami coin during the past three months. The growth was 20.4% in the past six months.
Experts say the increase in currency rates in the past several weeks has had a high impact on gold coin prices.
Gold prices in Iran are usually influenced more by the domestic forex market and less by the global gold market. The outcome is that the domestic gold market is relatively indifferent to the surge in prices of the precious metal in international markets.
Gold prices in global markets rose on Friday as fears of an economic slowdown from the coronavirus outbreak and lower interest rates globally offset strong US economic data, Reuters reported.
Spot gold rose 0.3% to $1,570.52 per ounce for the day but was down about 1.2% this week. It was on track for the biggest weekly loss since early November. The US gold futures settled 0.2% up at $1,573.40.