EghtesadOnline: Gold prices declined again in Tehran on Saturday amid widespread closure of markets and despite lukewarm trends in the foreign exchange market.
The Emami gold coin lost 1.65% and was worth 104.1 million rials, down 1.7 million rials compared to the session earlier.
The Half Bahar Azadi coin was 1-million-rial lower dropping 1.6% and bought 6.3 million rials, according to Eghtesad News website.
Usually influenced by forex trends, prices in the domestic bullion market dropped due to the market lockdown announced to contain the rapid spread of Covid-19 infections.
The dollar rose slightly by 0.12% to reach 247,800 rials in the open market. It faced a bigger decline in exchange shops affiliated to the Central Bank of Iran where it dropped 1.14% to be worth 214,910 rials.
In line with tougher lockdown rules announced by the government, Iran’s gold market will be closed for two weeks starting today (April 10), Ebrahim Mohammadvali, head of Tehran Gold and Jewelry Union said.
The gold market is on course for further decline during the two-week closure due to the expected decline in demand, said Mohammad Kashti-Aray, president of the specialized commission of gold and jewelry at Iran Chamber of Guilds, tala.ir reported.
"Gold prices are in a correction phase. Given the closure of markets we expect further decline in prices as demand weakens.”
As per lockdown rules, only essential businesses categorized as Group I, including bakeries, supermarkets, groceries, car shops, chain stores, health, medical and treatment centers, pharmacies and printing shops are allowed to open.
Market observers say the lockdown could help boost unofficial trade in gold via online platforms. Yet gold prices are expected to move downward due to lower prices in international markets and a dull domestic currency market
Gold fell more than 1% on Friday, weighed down by a rising dollar and US Treasury yields, but was still on course for its first weekly gain in three, Reuters reported.
Spot gold fell 1% to $1,738.43 per ounce having hit its highest since March 1 at $1,758.45 on Thursday. For the week, however, prices were up 0.5%. The US gold futures slipped 1.1% to $1,738.50.