Iran central bank moves to calm gold rush
Khaleej Times, (AFP)
19 April 2006
TEHERAN - Iran’s Central Bank moved on Wednesday to slow down a sharp rise in the price of gold, state television said on Wesdnesday, as traders spoke of increased public demand due to tensions over the Islamic republic’s nuclear programme.
The price of a gold coin weighing around 10 grammes (about a third of an ounce) reached 1.85 million rials (about 202 dollars) late Tuesday, a 25 percent surge on prices two weeks ago.
Following the Central Bank move to supply more coins -- which many Iranian prefer to buy rather than place cash in a bank -- prices fell back to 164 dollars.
“The price increase in is line with the rise in international prices, but there is an additional psychological factor here,” gold coin trader Javad Zargar told AFP.
He said demand spiked following last week’s announcement by hardline President Mahmoud Ahmadinejad that Iran had succesfully eneriched uranium -- despite a UN Security Council call for a freeze of the sensitive nuclear work. -source
2 comments:
With the recent drop in metals prices where would you put the price for support on gold? I could see the drop coming but I didn't sell because I'm thinking long term, but I would really like to buy some more gold I just don't know how low it may go.
see trend lines support , you can use MA , MAE of your choiceand Fibonacci lines.
see chart Gold Global Perspective: Gold and Silver: Wild Price Action !
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