EghtesadOnline: Gold prices swung like a pendulum Sunday in Tehran despite the certainty expressed by analysts that the fluctuations will fade soon and prices will continue to fall.
Emami gold coin started Saturday down 1.66%, from 123 million rials to 121 million rials. However, it was priced at 129 million rials Sunday afternoon as foreign exchange rates climbed, posting 4.6% growth over Saturday's close. The popular coin had recorded 6% and 14% drop in its prices, respectively, on Thursday and Saturday.
Half Bahar Azadi Coin recorded a 4.6% fall earlier in the day, though it recovered in the closing hours at 69 million rials or 1.66% higher than previous day's close.
According to the Tehran Gold and Jewelry Union website, 18-karat gold was worth 11.65 million rials per gram, nearly 2% higher compared to Saturday's close. The price was 10.83 million rials at 11:20 am.
Analysts expect the market to stabilize, or "decline further", says Ebrahim Mohammad Vali, head of the Tehran Gold Jewelry Union, pointing to the visible decline in demand for the precious metal.
In a talk with ILNA, he referred to impact of foreign exchange rates on domestic bullion market noting that with declining forex rates, "there is no resistance against further drop in gold prices, contrary to earlier months when prices kept rising largely due to speculative trade".