Gold Slips, Dollar Stable in Tehran Market
EghtesadOnline: Major currencies closed Saturday’s session unchanged while in the bullion market prices slipped after the gold coin peaked to new highs on Thursday.
Hitting a historic high of 113.6 million rials on Thursday, the Emami gold coin declined 1.8%, or 2 million rials, to be offered at 111.6 million rials.
Bahar Azadi gold coin dropped by 1 million rials, or 1%, to be traded at 107 million rials. One gram of 18-carat gold dropped by 1.27% to reach 10.7 million rials, according to the Tehran Gold and Jewelry Union.
Mohammad Kashti-Aray, president of Iran's Special Commission of Gold and Jewelry, told ISNA domestic gold prices were driven mainly by the price of the precious metal in international gold markets.
Kashti-Aray said the gold coin is being traded at 9.5 million rials above its real value, saying that with demand and supply reaching some “equilibrium”, the bubble has now declined by 7 million rials.
In global markets, gold rose on Friday en-route to its best month in 8-1/2 years as the dollar slid further after dismal US data added to doubts about a swift recovery from the
pandemic-induced economic slump, driving investors towards the safe-haven metal.
Spot gold was up 0.8% at $1,975.44 per ounce on Friday after snapping a nine-session winning streak on Thursday. US gold futures rose 1.5% to $1,970.7, Reuters reported.
Major foreign currencies remained largely stable in Tehran on Saturday with the dollar being traded at 234,000 rials. The greenback bought 235,000 rials during the session in the free market. It gained 7.3% in the last business week
One euro was offered at 274,000 rials, almost unchanged compared to Monday’s close. The UK pound sterling was worth 302,000 rials.
With deep fluctuations in currency rates having relatively slowed in the free market, it appears that the central bank will move to reduce the forex rate differences between its affiliated moneychangers and the free market.
Selected moneychangers affiliated to the Central Bank of Iran increase the USD rate by 2.38%, or 5000 rials, on Saturday to 213,000 rials.