Gold coin prices jumped above the all-time high of 120 million rials on Thursday as demand for the metal and foreign exchange rates soared again.
Emami gold coin briefly broke past the psychological level of 12 million rials but retreated slightly by 100,000 rials to trade for 119.91 million rials. The price was 10 million rials, or 1%, higher compared to the previous day.
The benchmark Bahar Azadi was unchanged at 112.5 million rials, according to Tehran Gold and Jewelry Union website.
Gold gained higher than any other asset in the last trading week, rising 8.2% weekly, according to Tejaratnews.
Volatility in the currency market is said to be the main driver of the spike in gold prices despite the fact that precious metal price has remained largely steady at global markets.
Gold fell on Friday as the US dollar rebounded, but the precious metal was on track for a weekly gain underpinned by worries over a global economic recovery from the coronavirus-led slump.
Spot gold was down 0.5% at $1,943.53 per ounce after hitting its best level since Sept. 2 at $1,965.94 on Thursday. Gold has gained 0.5% this week. US gold futures fell 0.6% to $1,951.90, Reuters reported.
Mohammad Keshti-Aray, the TGJU vice president has said that gold prices in Iran would be of the ascending order so long as currency rates keep on rising.
“We cannot expect a decline in gold prices until the rise in forex rates is halted,” he was quoted as saying by eghtesadonline.
Currency prices extended gains against the rial on Thursday, with the dollar reaching 257,000 rials in Tehran’s open market. The greenback was up 1.5% compared to Tuesday’s close.
