Iran’s gold market will be closed for two weeks starting today (Nov.21) in line with tougher lockdown measures announced by the government, head of Tehran Gold and Jewelry Union said.
“The bullion market and businesses operating under TGJU auspices will be closed for 15 days,” Ebrahim Mohammadvali was quoted as saying by IRNA.
“All shops selling gold, jewelry, silver, and gold coins operating along the streets or in malls are required to down their shutters,” he said, pointing to the new restrictions to curb the Covid-19.
President Hassan Rouhani last week ordered an extended lockdown of cities hit hardest by the coronavirus as daily infections and deaths set new daily records.
Iran’s gold market was once forced to close for a month during March-April due to restrictions on almost all businesses when the plague was first officially announced.
Market observers say the lockdown could help boost unofficial trade in gold via online platforms. However, gold prices in the domestic market are expected to continue declining due to lower prices in international markets and a sluggish domestic currency market, said Nader Bazr Afshan, a board member of TGJU.
The Emami gold coin was worth 117 million rials on Thursday. It has declined about 30% from its record high of 164 million rials in mid- October in the follow-up to plunge in forex rates and bearish trend in global markets. The price of the yellow metal has almost doubled since June.
Read More: Lockdown Closes Gold Market for 2 Weeks