The domestic gold market saw big gains at the beginning of trading week on Saturday amid rising currency rates.
The popular Emami gold coin jumped more than 4.7% or 7.5 million rials in one day to end 15.85 million rials.
The Half-Bahar Azadi coin was up 1.5% or 1.3 million rials to reach 87.8 million rials and one gram of 18-karat gold surged 2.5% to 14.5 million rials, according to the Tehran Gold and Jewelry Union website.
Gold prices in Iran are subject to trends in the domestic currency market with the precious metal taking less influence from international markets where it is logging consecutive declines.
Foreign exchange rates rebounded on Saturday after posting three straight declines in the middle of last week after the US dollar surged to the all-time high of 333,000 rials in Tehran’s free market.
The greenback retreated to 319,000 rials Thursday before surging to 321,000 rials on Saturday. The euro was traded at 336,900 rials, up more than 0.7%, the UAE dirham was worth 87,400 rials on Saturday, down 550 rials from the session before. However, the GBP lost 1.8% to buy 392,350 rials.
Prices at official exchange shops were lower. The dollar was worth 273,400 rials in the regulated forex market, where foreign currency is traded wholesale by authorized exchange shops and banks under the supervision of the Central Bank of Iran.
The CBI says it has taken measures in recent days to control currency prices. In a bid to boost supply, the regulator last week allowed moneychangers to buy currency from exporters at “negotiated rates”. The policy was soon extended to retail and institutional currency holders.
The High Council of Economic Coordination, an ad hoc decision-making body comprising heads of the three branches of power, recently gave the CBI added power to restore calm to the chaotic currency market.
According to Kamran Soltanizadeh, head of the Association of Bureaux de Change Operators, authorized exchange shops operating in the regulated market buy the dollar banknote at around 290,000-293,000 rials from hose willing to sell.
