Gold prices surged on Monday in Tehran amid sharp increase in the international market. After weeks of a lukewarm market due to relative stability in forex rates, as the main driver of gold prices, the Emami gold coin jumped 2.5 million rials or 2% to reach 120.5 million rials.
As with forex rates, the coin was largely stable in the past two months after bouts of sharp volatility. Plunging more than 25%, the coin was the worst-performing asset in the month from Oct. 15 to Nov. 15.
Half Bahar Azadi coin recorded a 2.4% increase on Monday to be traded at 63.5 million rials, and 18-karat gold quoted at 11.84 million rials per gram, more than 2.2% higher compared to Sunday, the Tehran Gold and Jewelry Union website said.
Normally the domestic gold market is largely influenced by forex rates but outpaced it following a surge in global markets.
Gold began 2021 climbing nearly 2% on Monday, closing in on a near two-month peak, as the dollar slid to 2018 lows and prospects of tougher restrictions to combat a new variant of the coronavirus kept safe-haven bullion in demand, Reuters reported.
Spot gold was up 1.7% to $1,930.65 per ounce at 1023 GMT, having hit its highest since Nov. 9 at $1,934.81. The US gold futures climbed 2.2% to $1,936.30. The dollar index tumbled to a two and a half year low, making gold cheaper for other currency holders.
Forex rates were slightly higher on Monday in Tehran's currency market. The dollar hiked 0.77% to reach 25,850 rials.
The euro eked out the highest daily gain to reach 316,460 rials, up 1.6% and the UK pound sterling was worth 352,710 rials, 0.52% higher compared to Sunday. The UAE dirham was up 0.7% gaining 500 rials to fetch 72,000 rials.
