The Golden Anchor: Expert Identifies Central Bank as Key to Iran’s Market Stability Amidst Political Crosscurrents
Tehran, Iran – In an insightful analysis of the global and domestic gold markets, Kioumars Amirian, a prominent gold sector expert, has underscored the pivotal role of Iran’s Central Bank in navigating the complex interplay of political pressures and market dynamics. Speaking with ISNA, Amirian highlighted how central bank policies and broader geopolitical conditions are shaping the trajectory of gold prices, both internationally and within Iran.
Global Dynamics and Geopolitical Winds
Amirian observed that the escalating price of gold on the global ounce market is inextricably linked to prevailing political conditions worldwide. He pointed to factors such as international tariffs, varying tax policies, and the substantial gold acquisition programs by central banks globally as primary drivers. These sovereign purchasing strategies, he noted, reflect a robust demand for gold as a strategic asset, contributing significantly to its rising international value amidst a climate of global uncertainty.
Domestic Market Pressures and Safe Haven Demand
Domestically, Iran’s gold market is experiencing a notable surge in demand, fueled by a combination of internal and external factors. Amirian identified international sanctions, the perceived risk of regional conflict, and broader political threats as key elements driving this trend. He further elucidated that challenges within the traditional banking sector, which some individuals perceive as not fully meeting their needs, are also prompting the public to withdraw capital and redirect it towards tangible assets. Consequently, even small investments are shifting towards gold in various forms—coins, melted gold, and other gold products—as a secure store of value.
Navigating Future Outlook Amidst International Pressures
While global gold prices have reached approximately $5,300 per ounce and could potentially climb to $5,500, Amirian suggested that a market correction would be a natural development. However, the timing and extent of such a correction, he stressed, are heavily contingent on global political policies and international relations. He specifically cited the impact of sanctions, potential threats from the United States, and decisions regarding international tariffs as critical determinants. The expert emphasized that the stability of the global currency market, and by extension gold, remains significantly influenced by U.S. policy decisions.
The Central Bank’s Pivotal Role in Economic Stability
For the domestic market, Amirian asserted that stability hinges almost entirely on the management strategies employed by Iran’s Central Bank. He explained that whether the market remains within its current range or experiences further fluctuations followed by correction depends on the Central Bank’s proactive role as a market regulator. The core challenge, according to Amirian, lies in the Central Bank’s ability to effectively manage and control the domestic foreign exchange market.
He provided a compelling example: should the domestic exchange rate decrease by approximately 2,000 Tomans, the prices of gold and coins would see a significant reduction, even if global gold prices continue to rise. Amirian concluded by drawing a parallel with central banks worldwide, emphasizing that their fundamental responsibility is to control and regulate markets. Therefore, the future trajectory of Iran’s gold market and broader economic stability rests squarely on the policymaking and market management strategies of its Central Bank and the nation’s overarching macroeconomic policies.
