That's right. Both India and Iran are ditching the traditional dollar currency in favor of trading with the precious-metal safe haven. Journalists speculate that the move is âan attempt to work around the sanctions imposed by the United States and Europe over Iran's alleged nuclear programme.â This transaction wasn't an easy one, as oil is priced in U.S. dollars. Therefore, two big banks had to mediate the ordeal between the two parties: India's state-owned UCO Bank and Turkey's state-owned Halkbank helped ensure a smooth and legal transaction between Iran and India... Both banks donât have any business with the US and therefore are less vulnerable to sanctions. According to the report, an Indian delegation has spent time in Tehran and finalized the details of the transactions. The annual capacity of trade between these two countries is 12 billion dollars. With gold trading at around $1668, that is around 7.2 million ounces of gold. This happened shortly after Iran and Russia announced they would trade using their own domestic currencies as opposed to the U.S. dollar. EU officials recently announced an âoil embargo on Iranâ beginning on July 1st. Consequently, tension is steadily rising in relations between the West and Iran... Oil is steadily rising as well. The embargo agreement means any bank dealing with Iran would be unauthorized to participate in transactions associated with American or European financial institutions. India's choice to pay for Iranian oil with gold with push gold even higher â while keeping the value of the dollar on a steady decline.