A Golden Window: Market Stability Presents Prime Opportunity for Gold Trade
Tehran Gold Market Enters Phase of Predictability
Following a period of global and domestic price adjustments, the Tehran gold market is now characterized by stability and predictability, presenting a prime opportunity for transactions, according to the head of the Tehran Gold and Jewellery Union. Nader Bazrafshan reported that with global gold prices stabilizing around $4,000 per ounce and a slight decrease in domestic rates, the market has entered a calmer phase, ideal for buying and selling with greater confidence.
A Week of Calm and Minor Adjustments
Detailing the market’s performance over the past week, Bazrafshan noted that while global gold experienced minor fluctuations, the overall trend was a slight decrease of three dollars per ounce, bringing the current price to $4,006. Domestically, this translated into a generally downward trend by the week’s end, with specific decreases across various gold and coin benchmarks.
He provided a detailed breakdown, highlighting that the price of one Mithqal of 17-carat gold fell by 500,000 Tomans, and the premium on Emami coins also saw a reduction of 200,000 Tomans. This period of relative stagnation and reduced demand, he explained, has paradoxically paved the way for market stability.
Confidence Returns for Transactions
Bazrafshan emphasized that the combination of lower global gold prices and a stable domestic currency market over the past month has brought the local gold market very close to a state of equilibrium. “At this moment, when the gold market is in a stable condition, it is the best time for transactions and trading gold,” he stated. “The market is in a state of assurance and is distant from uncertainty.”
He further elaborated that after recent declines from a peak of $4,370, the global market has found a firm footing around the $4,000 mark. While short-term, minor fluctuations of one to three percent should always be expected, the likelihood of a continued significant downward trend is now low. This new environment allows the public to conduct their trade with a higher degree of confidence.
Call for Enhanced Oversight of Online Platforms
Shifting focus to market regulation, Bazrafshan welcomed a new government directive mandating the Central Bank to establish a supervisory system for online gold and silver trading platforms. He described the move as “an appropriate and favorable program,” but stressed that such oversight should have been implemented from the very beginning of these platforms’ operations.
He pointed out that, unfortunately, extensive permits were granted to online platforms over the past one to two years without the necessary feasibility studies and regulatory infrastructure in place. This lack of oversight, he noted, led to arbitrary practices by some platforms, including charging undisclosed fees for physical delivery of gold and engaging in trades at prices significantly above or below the legally permitted limits, especially during recent market conditions.
Bazrafshan concluded that such practices highlighted the initial lack of supervision and created an atmosphere of uncertainty within the industry. He expressed optimism that the government and the Central Bank’s recent intervention would yield positive results, provided that the enforcement and monitoring of these new regulations are pursued seriously and consistently.