Minews - Expert predicts stability in Iran's gold market

(Minews) - Iran’s gold market could remain stable in the coming days though political developments in the region could directly impact the global market of gold, said an expert in Tehran.

Mohammad Keshti-Aray, president of the Gold and Jewelry Union, said he believes the ongoing crisis in Yemen and the falling value of the US dollar have already affected the global gold market by 6.5-7 percent.

But, he said, gold prices have remained stable over the past couple of weeks as Yemen’s crisis is losing momentum. He however warned that such developments could continue to challenge the regional economies.

“The escalation of the crisis in Yemen however could influence oil prices and accordingly gold prices,” he said, as reported by news website Banker on Tuesday.

In the past few weeks, reports on US economic indicators such as unemployment, production, consumption, and agro production as well as fluctuations in the US dollar’s value have neutralized the possible impacts on the gold market, Keshti-Aray argued. Additionally, he said, “the continuous demand for gold has helped the market remain stable.”

On the Iranian gold market, Keshti-Aray said the prices are affected by both global gold prices and the dollar value against the rial.

The latter is much influenced by the outcome of the ongoing nuclear talks between Iran and six world powers, known as the P5+1, as well as domestic economic developments.