TEHRAN – After a turbulent week in financial markets, Iran’s currency and gold markets showed simultaneous declines on Sunday, reflecting a cooling of speculative demand amid easing political tensions.
The Iranian rial-dollar exchange rate dropped to 111,300 rials per dollar, down several thousand rials from the previous day, signaling a retreat in precautionary buying. Similarly, the price of the Iranian gold coin, a popular investment vehicle, slipped back into the 111 million rial range. Gold bullion also followed suit, with the 18-carat variety retreating to around 10.6 million rials per gram, indicating reduced market enthusiasm.
Market observers attribute the recent volatility largely to heightened political uncertainties and external developments. In recent days, these pressures have subsided somewhat, leading to an automatic market adjustment. Narrower trading bands in after-hours currency transactions have also contributed to calmer market movements.
“The market is showing signs of settling after reacting sharply to political shocks and geopolitical events,” said one Tehran-based currency trader. “Speculative demand has eased, but significant gaps remain between official and free-market exchange rates, keeping some uncertainty in place.”
Despite Sunday’s easing, analysts remain cautious about the near-term outlook. Some view the current dip as a return to equilibrium, with speculative excesses unwinding. Others warn that without sustained political stability and improvements in Iran’s trade balance, the declines could prove temporary.
The gap between rates in the official and parallel markets remains wide, and fresh developments — whether geopolitical or economic — could quickly reverse the recent downtrend, analysts said.
On the supply side, currency dealers noted a drop in retail trading volumes, with many market participants adopting a wait-and-see stance amid ongoing uncertainty in parallel financial sectors.
Iran’s gold market mirrored this trend, with reduced demand easing upward price pressure after weeks of sharp gains. Gold’s appeal as a safe haven has been tempered by the recent easing of tensions and a more subdued economic outlook.
Overall, Sunday’s trading activity reflected increased caution among buyers, with many awaiting clearer signals from regional and international developments.
The rial has faced persistent pressure throughout the year due to economic sanctions, inflationary pressures, and political uncertainty. However, recent adjustments suggest the market may be recalibrating as some risk factors abate.
Still, experts warn that market stability remains fragile and contingent on a complex mix of political, psychological, and economic variables.
“The market’s calm is a positive sign but maintaining this stability requires sustained political calm and better trade fundamentals,” said an economic analyst in Tehran. “Until then, volatility remains a key risk.”
In summary, the simultaneous drop in the rial, gold coin, and bullion prices on Sunday largely reflects a moderation of expectations and a decline in speculative trading. 
If sustained, this could pave the way for relative stability in Iran’s currency and precious metals markets.