EghtesadOnline: Gold prices in Tehran continued to decline on Monday amid lack of demand due to the closure of markets.
The popular Emami gold coin briefly lost the critical 100 million rials to change hands for 99.8 million rials in the early hours of trade. The coin later pared some loss to close at 100 million rials, losing 1.8% or 18 million rials.
The Half Bahar Azadi coin dived deeper and lost more than 2.7% to be worth 55 million rials, 1.5 million rials lower compared to Sunday.
Likewise, one gram of 18-karat gold was tagged at 9.957 million rials down 1.9% compared to Sunday, according to Eghtesad News website.
The bullion has been hit by depressed demand as markets are closed due to the lockdown to contain the rapid spread of the Covid-19 infections.
“There are no buyers for gold. Sellers are in a rush as prices have been declining. But there are few deals,” Tasnim News Agency quoted Mohammad Kashti-Aray, president of the specialized Gold and Jewelry Commission of the Iran Chamber of Guilds as saying.
Kashti-Aray said the price of Emami gold coin at 100 million rials is important to buyers and if falls below the support level further decline is highly likely.
He pointed to foreign exchange rates as a leading factor in dragging down gold prices, saying the impact of forex rates has been outweighing prices of the precious metal in international markets.
Market observers say the lockdown has boosted unofficial trade in gold via online platforms. Kashti-Aray earlier said 2,500 jewelers are operating online in the capital alone, warning about risks of trade. "They have no permit to operate either virtually or in the physical gold market”.
Major currencies declined on Monday. The dollar fell more than 1% to reach 236,200 rials in the open market. The greenback was worth 232,750 rials at exchange shops affiliated to the Central Bank of Iran posting a 0.3% decline.