The Central Bank of Iran has ceased manufacturing and selling gold bars after a relative calm returned to the gold market.
CBI began to supply gold bars through Karafarin Bank during the tenure of its former governor, Mahmoud Bahmani, to stabilize the gold market.
The gold market saw its biggest upheavals between 2010 and 2011 when the price of gold bullion hit record highs.
Based on the new measures, gold bars will be sold only by certain jewelers, Mehr News Agency reports. However, the demand for gold bars has declined thanks to the new stability in the price of gold bullion, market activists said. Central Bank has also put restraints on gold bar exports and imports, contributing to the lukewarm demand for the precious metal, people familiar with the matter said.
“Right now some jewelry stores are selling gold bars but these are only certain shops in the [Tehran] Bazaar,” said Mohammad Keshti-Aray, president of the Jewelers’ Union, in an interview with the agency.
“The CBI only sells gold bars when the market needs it and right now there is no need for further supply since the market is doing fine.”
Keshti-Aray added that consumers can purchase as many gold bars as they want from jewelers. About the price of gold bars, he said the daily price of gold is used to calculate the worth of the precious bar. According to Kitco News Survey, global gold prices are set to drop next week as strong US economic data and weak demand in leading consumers China and India could dent the metal’s safe-haven status.
