Bull run in Iran’s gold coin market amid interest rate cuts (Exclusive)
Baku, Azerbaijan, Sep. 4
By Farhad Daneshvar – Trend:
Gold price has been in surge over the past weeks and the precious metal on Monday set a five-year record amid a decision by Central Bank of Iran (CBI) to cut the interest rates in the country.
Per gram of the 18-karat gold hit $ 323.6 (1.265 million rials) in the Iranian market on Sep. 4, only two days after Iranian banks implemented the latest directive by the Central Bank on cutting the interest rates.
Ahmad Vafadar, an official with Tehran Gold and Jewelry Union, rejected the opinion that the recent global gold rally and political tensions between the US and North Korea had a major impact on the considerable hike in the prices of gold in the domestic market of Iran.
He told Trend that the price of gold coin has increased by about five percent since Iranian banks began implementing the CBI directive on Sep. 2.
"Only two days after cutting the interest rates, the price of gold coin has increased by five percent which is a considerable surge," Vafadar said.
Emami gold coin and Bahar Azadi gold coins were traded for $329.5 (12,784,000 rials) and $321.1 (12,460,000 rials) respectively on Monday.
The CBI issued the new directive on Aug. 23, setting a deadline for country’s banks to reduce their deposit interest rates to 15 percent as of August 2.