Economy, Business And Markets

Azadi Jumps to 6-Month High

Business & Markets Desk
Azadi Jumps to 6-Month High
Azadi Jumps to 6-Month High

The Azadi gold coin advanced to a seven-month high driven by gold’s five-week rally as safe haven demand increased.

The Azadi benchmark surged 1.24 percent and hit 9,800,000 rials by 13:57 GMT on Wednesday, following gold’s Tuesday night gains in the international market.

Bullion for immediate delivery remained virtually unchanged on Wednesday, edging down 0.15 percent and trading at 1,228.88 by 13:57 GMT, after jumping 2.2 percent in New York trading hours in the previous session.

Despite gold’s gains, the DXY dollar index – which weighs the greenback against a basket of major currencies – remains near its strongest in five years, making gold’s rebound even more significant for users of other currencies.

Gold edged upwards for a second day in a row to trade close to a seven-week peak on Tuesday as weakness in the dollar and global equities prompted investors to seek safety in the precious metal.

The dollar index nursed hefty losses after a brutal shakeout of bullish positions, with investors finding excuses to take profits as the year-end looms, Reuters reported.

Global equities took a hit from the political turmoil in Greece and after China’s market posted its worst day in five years.

The Azadi has risen in line with bullion for four weeks, capping the precious coin’s largest monthly gain since February. Azadi has gained over 15 percent in the past 12 months.

“We see gold at 10 million rials before the end of the current year,” said one veteran gold trader to the Financial Tribune, as demand for various denominations of gold coins rises in Iran in the month of Esfand – the month before the beginning of the new Persian calendar year, which starts March 21.