Gold declined in Tehran on Monday, though gold coins were sold at higher prices.
According to Tehran Gold and Jewelry Union's website, 18-karat gold was worth 5.882 million rials per gram, marking 1.58% decline compared to Sunday's close.
Unlike 18-karat gold, gold coin prices registered growth in Monday’s trade. The benchmark Emami gold coin was sold at 60.64 million rials on the third day of the week to register 1.68% or one million rial increase compared to the earlier day.
Experts say gold coin prices are highly impacted by foreign exchange rates. TGJU data indicates 5.7% increase in the rate on Monday fetching 156,520 rials for a dollar.
Gold coins and foreign currencies are traditionally considered safe haven investments by most Iranians. Emami gold coin has recorded 34% increase in the past three months.
This is while in international markets gold rose nearly 3% on Monday, following a steep decline in the previous session, as the dollar and global equities fell sharply after the US Federal Reserve made another surprise interest rate cut, Reuters reported.
Outbreak of the noble coronavirus also is seen as an impacting factor, as TGJU reported considerable decline on the demand side of the gold market.
"Fluctuations in currency rates and outbreak of the coronavirus has put the market into one of the worst recessions in recent history," Masoud Yazdani, TGJU deputy head, told ISNA.
However, some experts say gold prices are likely to rise so long as the risk of coronavirus spread exists.
The Health Ministry in Tehran confirmed 14,991 cases of COVID-19 virus by Monday noon and the number of deaths rose by 129 to 853.
Gold is not the only sector hit by the deadly virus. Many companies have been forced to cut thier workforce, scale-down production or shutter their business.
Central Bank of Iran on Sunday named businesses that would be covered by government financial assistance, namely those active in the food, travel, transportation and apparel industries plus distributors, gyms and education centers.
