TSE drop unlikely despite gold, oil slips
Tehran, Iran, November 29
By Mehdi Sepahvand – Trend:
Tehran Stock Exchange (TSE) unlikely to see low days, despite fluctuating prices of gold and oil.
Over the past week TSE broke its own record twice. The main index on Saturday surged 1130.4 points, or 1.27 percent, to break above 90,000 for the first time, standing at 90469.5. The TSE saw another rise of some 600 points on Monday, yet registering a new high.
Experts have attributed these peaks to the rising prices of commodities in the global market, such as gold, oil, and metals, as well as to a strong dollar against the Iranian rial.
This comes despite the fact that the prices of gold and oil witnessed some fall this week. Bank Melli of Iran, through its affiliate Bank Kargoshaee, launched a three-day auction to deflate the gold coin bubble in Tehran's market.
According to domestic gold market analysts, there was a 2-million-rial ($48.5) bubble in the price of gold coin compared to global prices.
The pouring of gold coins into the market did bring prices down a little bit, but after a couple of days signs of rise emerged nonetheless.
Gold prices on the global market rose to a six-week high on Monday as the greenback remained under pressure and rising geopolitical risks continued to drive demand for haven assets.
In the Iranian market, the USD also continued, as of the pastfew months, to rise on Wednesday, going up 90 rials in the free market to stand at 41,270.
As for oil, OPEC ministers head to Vienna on Thursday to decide whether to extend output cuts beyond March next year. The prospect, however, of an alliance breakdown between the world's two largest oil producers threatens to scupper the cartel's plans.
Oil prices slipped on Wednesday as doubts set in about Russia’s willingness to substantially extend a deal among some of the world’s biggest exporters to curb output to help tackle global oversupply and support prices.
Brent crude futures were down 22 cents on the day at $63.39 a barrel by 1147 GMT, while U.S. light crude fell 25 cents to $57.74 a barrel.
This, however, is too small and short-lived considering the fact that since the cartel's last meeting in May, crude prices have surged nearly 20 percent while West Texas Intermediate (WTI) prices are up approximately 10 percent.