Gold prices reached a new peak in Iran on February 20, with the spot price climbing 0.3% to $2,945 per ounce, marking its highest level in recent months.

The precious metal has gained $14 over the past week and $234 over the month, representing an 8.6% increase in the past 30 days amid growing market uncertainty and the weakening of Iran's currency, with the open market exchange rate at IRR938,000 to the dollar Khabar Online reported.

In Iran's domestic market, the benchmark Emami gold coin surged IRR1.87mn to IRR78.58mn ($83.77), while the Bahar Azadi coin rose IRR1.12mn to reach IRR73.13mn ($77.96).

Half and quarter coins also registered gains of IRR700,000 each, settling at IRR42.9mn ($45.74) and IRR22.4mn ($23.88) respectively.

One gram of 18-karat gold increased IRR168,000 to IRR6.92mn ($7.38), while one mithqal (4.68 grams) of gold climbed IRR753,000 to IRR30.02mn ($32.00). Second-hand gold was trading at IRR6.83mn ($7.28) per gram.

Market analysts noted that political uncertainty from the weakened rial against the dollar, significant increases in global gold prices, and rising inflation expectations have created favourable conditions for gold price increases in recent weeks, according to the Shargh Media Group.

The price premium on Iranian gold coins also saw movement, with the Emami coin premium rising IRR519,000.

The half-coin premium increased by IRR12,000, while quarter-coin and one-gram coin premiums grew by IRR356,000 and IRR132,000, respectively. The Bahar Azadi coin premium, however, decreased by IRR300,000.

Silver continued its upward trend in parallel markets, with global prices reaching $33.11 per ounce, marking a 38-cent increase. In the Iranian market, one gram of 999 silver rose IRR1,130 to trade at IRR112,860 ($0.12).

Following a recent meeting between President Masoud Pezeshkian, Economy Minister Abdolnasser Hemmati, and Central Bank Governor Mohammad Reza Farzin with lawmakers—focused on ongoing fluctuations in the currency market—exchange rates saw a sharp increase.

MPs have since announced plans to impeach Abdolnasser Hemmati, citing his insistence on replacing the secondary exchange market with a commercial market where rates are determined by supply and demand.

Critics argue that this policy has exacerbated instability in the currency market. The former platform, called NIMA, used to host transactions between importers and exporters of non-oil goods at rates dictated by the CBI.

The initial plan was to employ negotiated rates so that exporters would be encouraged to repatriate their foreign currency income back to the country. 

However, on February 19, President Masoud Pezeshkian made an unexpected visit to the Economy Ministry, publicly reaffirming his support for Hemmati.

Pezeshkian said that decisions regarding the currency market are made collectively by the heads of the three branches of government, stating that if anyone is to be held accountable, it should be the collective leadership rather than a single official.

In response, Hemmati later declared his readiness to appear before Parliament, asserting that he could confidently defend his policies and performance.