Economy, Business And Markets

Gold Coin Drops in Tehran After New Forex Measures

The benchmark Bahar Azadi gold coin   lost more than 11% on Tuesday. The benchmark Bahar Azadi gold coin   lost more than 11% on Tuesday. 

When the Central Bank of Iran abruptly announced the unification of the US dollar's exchange rate from Tuesday, the gold market reacted swiftly and prices declined.  
CBI announced late Monday that each US dollar will henceforth be offered to designated groups at the unified rate of 42,000 rials and since the USD rate is one of the main factors impacting gold prices, they went into freefall on Tuesday.
The benchmark Bahar Azadi gold coin, which traded at an all-time high of nearly 20 million rials ($477) a day earlier, lost more than 11% by Tuesday's market close and was priced at around 17.8 million rials ($423), according to Tehran Gold and Jewelry Union's website. 
This is while the head of TGJU said on the same day that the freefall happened in the complete absence of deals on the scale of more than five coins.
"I can actually say that no sales and purchases are being conducted because the risk margin is high and the market is moving cautiously in light of price shocks,” Mohammad Keshti-Aray also told ISNA.


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