Economy, Business And Markets

Azadi Gold Coin Hits 4-Month Low

Azadi Gold Coin Hits 4-Month LowAzadi Gold Coin Hits 4-Month Low

Following a trend that began Saturday, the price of gold coins in Iran dropped to its lowest level in four months on June 15.

Benchmark Azadi bullion coin fell 0.66% at 9,070,000 rials on Monday, following the impact of the global trend on both gold and the dollar. Other coins did not go through a major change. Collecting market info was disordered, as data flow was disrupted by the central bank.

Spot gold had edged 0.31% lower to $1,175.60 an ounce by 1254 GMT on Saturday, after earlier climbing to a session-high of $1,186.20. The dollar rose 0.1 percent against a basket of major currencies.

The Azadi coin slid 0.28 percent following the fall of gold in international markets to $1173.10 an ounce on June 5. Iran's market was in recess due to public holidays (June 3 and 4).

Some experts assess the change in gold price as the impact of the depreciation of US dollar against the rial. This is while others say the increasing trading in Ferdowsi Street–the center of foreign exchange trading in Tehran—indicates a rush by gold coin owners to sell their holdings, IRNA reported.

Mohammad Keshti-Aray, head of Iran National Union of Gold and Jewelry, mentioned the drop in foreign exchange rates as the major reason for the decline in gold coin prices.

"As the trading volume goes down, gold coins will keep depreciating till the middle of the fasting month of Ramadan (starting June 18)," he said.

Gold is typically in demand during times of political and financial uncertainty, although gains tend to be short-lived.