TEHRAN,Iran,Aug.10
Trend:
Gold and gold coin price have dropped sharply on Sunday in Iran said the head of Tehran Gold and Jewelry Guild Union
Mohammad Kashtiaray has discussed decline of gold and gold coin price in an interview with Trend.
"The decline of gold and gold coin price was due to drop of foreign currency rates on Sunday," he said.
"The Iranian government is expected to announce an economic breakthrough this week and the gold market has reacted to the futute announcement. It has been presumed that possible economic packages would reduce foreign currency rates," he said.
"Therefore the USD rate had sharp decline of 12,000 rial and one dollar traded 210,300 rial at the foreign currency market while gold and gold coin price had dropped 12 million rial (about$280) drop and sold for 100 million rial (about$2,500) ," he added.
"It has been predicted that if the economic package would improve country's economic situation, prices would decline further," he said.
"It's not clear how much the prices would drop, it would all depend on the government economic suggestion," he said.
"There have been rumors about the government economic package that was rejected, some say the breakthrough is a possible approval of the Financial Action Task Force (FATF) related bill and some say it's about sale of oil bonds, we should wait until the official news is announced," he said.
"The gold and gold coin bubble had burst and it is obvious that the drop will continue until the government announces its economic package, the drop or increase of prices depends on the economic package introduced," he added.
"If global gold price is calculated based on current foreign currency rate the price of one gold coin would be 100 million rial (about$2,500), so decline of foreign currency rate would reduce gold price," he said.
One gold coin was sold for 100 million rial (about $2,500) at the market, half of a gold coin was 50.3 million (about $1,280) and a quarter of gold coin was traded 30.8 million rial (about $730). The price of 17k gold was 10.6 million rial (about$253).