Economy, Business And Markets

Rial, Azadi Gain Minor Ground

Rial, Azadi Gain Minor GroundRial, Azadi Gain Minor Ground

The rial rose against all major currencies on Sunday. The US dollar was down 10 rials or 0.3 percent at 08:30 GMT to 34,240 rials. The euro’s fall was less noticeable, dropping 40 rials or 0.1 percent to 38,790 rials.

In the precious metal market the Azadi bullion coin edged up 0.15 percent to at 9,860,000 rials by 08:30 GMT, bolstered by the upward trend in precious metals over the last week.

The Azadi followed international trends as gold advanced for a third straight session on Friday and was on track to end a four-week losing streak, supported by firm Chinese demand and a softer dollar.

Gold has fallen more than seven percent from a five-month high above $1,300 hit in January as expectations of a US rate increase dimmed bullion’s safe-haven appeal. But it has found support at around $1,200, thanks to demand from No. 2 consumer China.

Gold in other Asian markets has started to pick up, with the Indian market being another main driver of this trend.  Gold premiums in the one billion population country could jump to as much as $5 an ounce; this could have a knock on effect to Persian Gulf countries as well as Iran.