Gold and Coin Market Trends Lower; Coin Price Drops 17 Million Tomans

The head of the Tehran Gold Guild stressed the timely intervention of the Central Bank and said that a 10,000-toman drop in the dollar cut the coin price by 17 million tomans over one week. The continuation of this trend depends on the Central Bank's policy.

The head of the Tehran Gold Association emphasized the timely intervention of the central bank and said: the drop of 10 thousand tomans to the dollar reduced the price of the coin by 17 million tomans within a week. The continuation of this trend depends on the policy of the central bank.

According to Ambassador Arjan, Nader Bazarafshan, head of the Tehran Jewelry Manufacturers and Sellers Union, announced a significant drop in the price of gold and coins in the market over the past week and said: despite the increase in the price of gold by 12 to 16 dollars in the international markets, the drop in the exchange rate in the domestic market has caused a significant drop in prices.

He stated: Since the beginning of the week, the price of each gram of 18 carat gold has decreased by about 1,950,000 tomans. Also, the price of the new design coin has decreased by about 17 million tomans, the old design coin by 14 million and 500 thousand tomans, the half coin by 7 million and 500 thousand tomans, the quarter coin by 4 million and 500 thousand tomans and the one gram coin by about 2 million tomans.

Referring to the reduction of the coin bubble, Bazarafshan added: Compared to the peak of prices, the coin bubble decreased by about 900 thousand tomans and reached 10.5 million tomans. However, the gold and coin bubble is still high compared to previous levels.

The head of the Gold and Jewelry Union considered the drop in the world price of gold and the drop of about 10 thousand tomans in the dollar rate in the domestic market to be the main factors of the price drop and stated: political and economic news and developments have also influenced the market trend. It should be seen whether the downward trend of the dollar rate in the domestic market and the price of gold in the global markets will continue in the coming days.

About the prospect of the gold and coin market until the end of the week, Bazarafshan said: Considering the decrease in prices compared to the recent peak, the possibility of the price of each gram of 18-karat gold falling below 25 million tomans by the end of the week is low. Of course, this issue depends on the continuation of the exchange rate trend and the policies of the central bank in managing the market.

The central bank should enter the currency market from the beginning of fluctuations

He stated that if the exchange rate continues to decrease, there is a possibility of a further drop in the price of gold and coins. When the exchange rate increases by about 30 thousand tomans and after about 20 days it faces a drop of 10 thousand tomans, it indicates the necessity of timely intervention to manage the market.

The head of the jewelry union continued: If the policies of the central bank are focused on managing the currency market and establishing stability and reducing its rate in the coming days, we can expect that the price of gold and coins will continue to decrease. Of course, it seems that the rate of price drop will not be significant until the end of the week and 18 carat gold will remain at 25 million tomans.

In the end, referring to the drop in prices compared to the recent peak of the market, Bazarafshan said: "Recent reductions have been significant and people can make their exchanges considering the market conditions and possible fluctuations." However, the price trend in the coming days will depend on the developments of the currency market, global conditions and the decisions of the monetary policy maker.