Title: Global Gold Soars, Iranian Market Sees Divergence as Currency Dynamics Shift
Tehran Gold Market Experiences Price Adjustment
In a notable divergence from global trends, the domestic gold and coin market in Iran witnessed a significant price correction on Monday, even as the international benchmark reached a new record high. This development highlights the unique interplay between global commodity prices and domestic economic factors.
A Tale of Two Markets
While the global price of gold surged by $57 to an unprecedented $3,946 per ounce, the Tehran market moved in the opposite direction. According to a report citing the First Vice President of the Tehran Gold and Jewellery Union, Mr. Sharbiani, the primary driver behind this local decline was a decrease in the exchange rate of foreign currency.
Market Analysis and Outlook
Commenting on the market’s trajectory, the union official noted that the previous upward trend for gold and coins appears to have paused for the moment. “We must see which direction the global ounce and the exchange rate go tomorrow,” Sharbiani stated, emphasizing that the market’s future direction remains contingent on these two key variables.
Auction Deadline and Market Activity
The market activity coincided with the final day for financial deposits for the fifth phase of the central bank’s gold coin pre-sale, conducted via auction. The registration of proposed bids for these coins is scheduled to take place on the trading system tomorrow, Tuesday.
Price Corrections at a Glance
The domestic market saw broad-based decreases across various gold-related products:
- New Design Bahar Azadi Coin: Decreased by 1,800,000 Tomans
- Old Design Bahar Azadi Coin: Decreased by 3,100,000 Tomans
- Half Bahar Azadi Coin: Decreased by 900,000 Tomans
- Quarter Bahar Azadi Coin: Decreased by 600,000 Tomans
- Each gram of 18-karat gold: Decreased by 278,000 Tomans
This market behavior underscores how domestic monetary conditions can create a distinct economic environment, demonstrating a decoupling from international commodity rallies under specific national circumstances.