The sanctions, on a broader scope, loosen against Iran after the country agrees to a join-nuclear agreement. The agreement outlines that Iran must improve relations with monitors from the United Nations and work towards the distraction of their uranium stockpiles that are enriched to 20 percent.
Iran must also stop the installation of an advanced centrifuge as speculation increased that the country’s nuclear program was for much more than energy purposes.
According to Standard Bank Group and Societe Generale, the agreement made particular sanctions less strict, including the trading of gold. Iran’s gold reserves is unknown, and the ability to trade the precious metal will not likely have an affect on prices. “Gold overall is dominated by much bigger forces right now,” said Walter de Wet, an analyst at Standard Bank.
Gold reserves are not disclosed by Iran, but demand for jewelry and other products are evident. Last year, 36.9 metric tons was used, reported in data provided by Thomson Reuters GFMS.It is speculated that reserves increased last year in order to pay for energy exports.
The sanctions, which were implemented in 2003, destroyed the country’s economy. The ability to receive payments were stunted, so the use of gold increased. Iran received 126 tons last year from Turkey as payment for Iranian natural gas. This was a 125 ton increase since 2011, according to the World Trade Organization.