Gold price in Iran affected by oil price jumps, COVID-19 spread

Business Materials 10 March 2020 09:41 (UTC +04:00)
Gold price in Iran affected by oil price jumps, COVID-19 spread

TEHRAN, Iran, March 10


Iran's gold market has been facing price jumps due to oil price drop and the COVID-19 outbreak, former head of Tehran Gold and Jewelry Union Ahmad Vafadar told Trend.

"The disease spread has damaged the US and the UK stock markets, so their gold reserves were increased," he said.

"The global gold price increased by $20 per ounce (to $1,700) in a short time, and it seems that the price would continue to jump, considering the unstable oil price. This, of course, affects Iran's dometic gold market," Vafadar said.

He pointed out that most of gold-selling shops at Tehran Bazaar were closed due to coronavirus spread.

"Although across the city some of gold and jewelry shops are still active due to the upcoming new Iranian year (starts March 21,2020) holiday," he said.

Vafadar said that Iran's Health Ministry has been constantly advised people to follow precautions and avoid purchasing second hand gold to prevent the coronavirus spread.

"The sale of second hand gold is banned due to health precautions and any gold shop would be in trouble if it violates this regulation," he added.

"By rise of gold price people have rushed to the market to buy second hand gold. The market experts believe these kinds of interaction are not right and trading second hand gold would cause health issues and can transmit skin diseases and infection," he said.

Iran is one of the recent countries, affected by the rapidly-spreading coronavirus. According to recent reports from the Iranian officials, over 7,100 people have been infected, 237 people have already died. Meanwhile, over 2,300 have reportedly recovered from the disease.

The country continues to apply strict measures to contain the further spread. Reportedly, the disease was brought to Iran by a businessman from Iran's Qom city, who went on a business trip to China, despite official warnings. The man died later from the disease.

Following the reports of coronavirus spread in the Islamic Republic, several countries have taken measures, including closing borders and banning flights.

The Islamic Republic only announced its first infections and deaths from the coronavirus on Feb. 19.