Gold, Currencies Under Pressure

EghtesadOnline: Forex and gold prices continued to fall on Wednesday in Tehran. The Emami gold coin lost 3.42% and was priced at 117 million rials.

News ID: ۷۵۱۵۳۸

21 November 2020

Half Bahar Azadi plunged 5.74% to 61 million rials. The coin had closed Tuesday trade at 64.5 million rials. A quarter Bahar Azadi gold coin lost 1.5 million rials and was traded for 43 million rials, according to Eghtesadnews website.

Gold coin prices in Iran almost always move in tandem with foreign exchange rates, though at times are also impacted by prices in the international bullion market.

According to Reuters, gold stuck to a narrow range on Wednesday as optimism over Pfizer's successful vaccine trials countered concerns over rising coronavirus infections and bets for further economic support. Spot gold eased 0.1% to $1,876.41 per ounce, while US gold futures fell 0.4% to $1,876.90.

Foreign exchange rates in Iran posted smaller decline on Wednesday. The dollar was worth 257,000 rials in the free market, 4,000 rials or 1.56% lower than the previous day's close. The euro lost 2,350 rials or 0.77% to fetch 307,530 rials and the British pound shed 1,560 rials to buy 343,920 rials. The Emirati dirham fell 0.7% cut compared to Tuesday's close to be tagged at 72,300 rials.

Moneychangers affiliated to banks quoted slightly lower rates. Melli Exchange, affiliated to Bank Melli Iran, priced each US dollar at 256,200 rials and the euro at 303,000 rials.

The regulated forex market, officially known as the Iran Currency Exchange, started announcing prices for the first time on Monday -- a new move to help improve transparency in the near permanent volatile forex market.

The regulated market is a network of banks and certified moneychangers under CBI auspices and deals in wholesale trade. The dollar was traded at 248,110 rials in the regulated market, which was down 1.42% compared to Tuesday.

After posting successive record-highs, forex and gold prices moved back in Iran under the influence of the election victory of Joe Biden in the US presidential election on Nov. 3.