Economy, Business And Markets

Unofficial Trade Behind Gold Price Fluctuations

Unofficial Trade Behind  Gold Price FluctuationsUnofficial Trade Behind  Gold Price Fluctuations

Chairman of the Union of Gold, Jewelry, and Precious Stone Producers and Exporters has attributed the fluctuations in gold coin prices to their unofficial trade in the market.

Ebadollah Mohammadvali told ISNA that many dealers in the market are conducting businesses by selling and buying gold coins, “Which leads to sharp fluctuations in gold coin prices.”

The official said that gold coin dealers in the market should be identified, in order to have an organized market and also to prevent any irregularities in the future.

Back in 2011, a sudden depreciation in the value of rial pushed up demand for gold coins as many Iranians feared sharp devaluation of their property and monetary assets. The ‘gold rush’ led to the formation of a bubble in the gold coin market.

Mohammadvali asserted that the government aims to bring back stability to the market, adding that “prices will definitely go down once stability is achieved.”

Domestic economic indices did not change a lot, although global gold prices went down by 30-35 dollars per ounce during the past week. However, gold coin prices decreased by 100,000 rials in comparison with the first day of the week, standing at 9,285,000 on Thursday, according to Mohammadvali.