The initial reaction of the foreign exchange and gold markets to the signing of the memorandum of understanding between Tehran and Washington by the presidents of Iran and the United States was not a decline, contrary to the expectations of some market participants, as prices trended upward during midday trading on Thursday, June 18.
By Thursday noon, the price of the U.S. dollar in the open market rose by approximately 4,000 tomans, reaching 157,000 tomans. The Emami gold coin also grew more expensive by about 2 million tomans, trading in the range of 166 million tomans. Meanwhile, each gram of 18-karat gold stood at around 15.7 million tomans, experiencing no significant change.
This comes even as Mohammad Bagher Ghalibaf, the Speaker of the Islamic Republic’s Parliament and head of Iran’s negotiating team in the talks with the U.S., stated during a joint meeting between the special envoy for China affairs and the Iran Chamber of Commerce that the Islamic Republic must move past the confrontation phase and focus on economic development. Highlighting the importance of economic relations with China, he also described Beijing’s position as “unique” for Iranian trade.
Prior to the official signing of the agreement, the market had reacted more sharply to the release of news regarding a potential deal. On Tuesday, June 16, the prices of the dollar and gold coins saw a significant decline, pricing in some of the positive expectations regarding the de-escalation of tensions. However, the subsequent rebound in prices after the agreement was signed indicates that traders are still waiting for the details of the accord and its practical consequences to become clear.
