Gold Outpaces Forex in Tehran’s Market

EghtesadOnline: Prices in the currency and gold markets surged Sunday after some stability in four sessions. However, the precious metal outpaced forex rates buoyed by rising trends in international markets.

News ID: ۷۸۶۹۵۹

06 September 2021

The dollar was worth 271,510 rials in Tehran’s up 0.5% or 1,400 to buy 271,900 rials.

Political tensions in neighboring Afghanistan has spurred a bout of volatility in Iran’s currency market in the past several weeks. The greenback reached as high as 280,000 rials in the beginning of last week before dropping to 270,000 rials in the middle of the week.

The currency market was rather sluggish after reports that the largest money exchange market in Afghanistan- the Sarai Shahzada Market -- opened in the weekend. The market was closed after the Taliban seized control of Kabul in mid-August, news outlets reported.

Other major currencies eked out gains on Sunday. The euro was the big gainer and surged 1.67% to fetch 316,190 rials. One UK pound sterling was worth 378,650 rials, up 0.33% daily and the UAE dirham gained 0.3% to change hands at 73,820 rials.

The greenback was quoted at 262,170 rials at exchange shops affiliated to the Central Bank of Iran, up 0.51% or 1,340 rials compared to Saturday.

Prices declined slightly in the wholesale currency market in Tehran, known as the regulated forex market. The dollar dipped 0.3% or 770 rials to reach 264,220 rials.

More than $6.9 million and close to €1.3 million were traded in this market on Sunday, according to Mehdi Gahar-Rostami, an official with the regulated market, IRIB news reported.

The market is a network of banks and certified moneychangers working under CBI supervision dealing in wholesale currency trade.

Gold was traded higher across the country following higher prices in international markets. One Emami gold coin was traded at 121.15 million rials on Sunday, rising 1.2% or 1.45 million rials.

The Half Emami coin gained more than 1.1% to reach 62.2 million rials and one gram of 18-karat gold closed at 11.7 million rials, up 0.7% compared to the session on Saturday, according to Tehran Gold and Jewelry Union website.

In world markets, gold advanced more than 1% to its highest in 2-1/2 months on Friday, as a slower-than-expected US jobs growth in August drove the dollar lower, casting doubts on the federal reserve's tapering timeline, Reuters reported.

Spot gold was up 1.2% at $1,830.71 per ounce  after hitting its highest since mid-June at $1,833.80, on track to a fourth straight weekly gain while gold futures settled 1.2% higher at $1,833.7.