Gold prices and foreign exchange rates retreated on Wednesday after rallying for two consecutive sessions.
The dollar lost 3.14% or 8,000 rials, and was quoted at 255,000 rials in Iran’s open markets. The UAE dirham was down 3.4% while the euro and UK pound sterling lost 0.61% and 1.12%, respectively.
The greenback had gained 5% in two straight sessions triggered by the Majlis decision to suspend all commitments stipulated in the Iran nuclear deal with six world powers in 2015 officially known as the Joint Comprehensive Plan of Action.
As expected, the move created a negative climate in the financial markets, and was seen by the dealers and speculators as escalating political tensions and the likelihood that the national currency could fall further.
Keeping abreast forex rates as usual, gold also dropped.
Emami gold again retreated below 120 million rials and traded at 118 million rials on Wednesday posting more than 5% decline, paring the entire gain on Tuesday.
Half Bahar Azadi gold coin lost 1.6% to reach 6 million rials and one gram of 18-karat gold was worth 11.06 million rials down 0.1% overnight.
Gold rose to over a one-week high on Wednesday in international markets supported by a soft dollar, while signs of progress in discussions over a new US coronavirus relief package bolstered bullion's appeal as a hedge against possible inflation, Reuters reported.
Spot gold rose 0.6% to $1,825.41 per ounce having earlier hit $1,832.20, its highest since Nov. 24. US gold futures gained 0.6% to $1,829.30.
