Gold, Currency Slump in Tehran

EghtesadOnline: The domestic bullion market opened lower on Saturday influenced by the downside in international gold markets.

News ID: ۷۸۶۱۹۷

07 March 2021

The Emami gold coin was traded as low as 103.5 million rials losing 4.5 million rials to the day.   Half Bahar Azadi gold coin was worth 61 million rials, down 1.5 million rials or 2.5%. One gram of 18-karat gold was sold for 10.15 million rials, down 3.5%, according to Tehran Gold and Jewelry Union website.

Unlike the norm, the domestic gold market took influence more from world market trends than ups and downs in foreign exchange rates as the latter experienced smaller losses.

Gold slumped to a near nine-month low on Friday and headed for a third straight weekly decline after US Federal Reserve Chair Jerome Powell disappointed investors with his view on rising yields that pushed up the dollar and bond yields, Reuters reported.

Spot gold eased 0.2% to $1,693.79 per ounce for the day, having earlier dropped to its lowest since June 8 at $1,688.96. It was down 2.3% for the week so far. The US gold futures dropped 0.6% to $1,691.20.

The dollar in Tehran retreated from the 250,000-rial level to be quoted at 246,500 rials, down 1.4% or 3,500 rials compared to the previous session.  The UAE dirham experienced the biggest loss on dropped 1.75% to be worth 68,600 rials. The euro dropped slightly by 0.2% to reach 298,070 rials and the UK pound sterling was buying 346,270 rials -- down 0.3% compared to the earlier session.

In the regulated forex market, the domestic wholesale currency market, the American currency was 1.2 % lower at 241,300 rials, according to the Persian-language economic website eghtesadnews.

The regulated market is a network of banks and certified moneychangers working under CBI supervision who deal in wholesale trade.

Reports about release of Iran's foreign currency assets held in Iraq was bad news for currency investors and avaricious speculators on Saturday.

News outlets quoted Hamid Hosseini, a member of Iran-Iraq Chamber of Commerce's board of directors, as saying that the US has agreed with unfreezing of part of Iranian assets locked in the Trade Bank of Iraq.