Iran's gold market affected by coronavirus and foreign currency rate

Business Materials 16 March 2020 13:23 (UTC +04:00)
Iran's gold market affected by coronavirus and foreign currency rate

TEHRAN,Iran, March 16


Price of gold in Iran has been affected by the coronavirus spread and rise of foreign currency rate, head of Tehran Gold and Jewelry Union Mohammad Keshtiaray told Trend.

"The gold guilds are on their own accord and the regulation over closure is depending on Department of Public Safety in Tehran," he said.

"The union can not issue such order, the guilds are active under supervision of Department of Public Safety in Tehran, therefore unions can not make a decision over closure or continue of work," he said.

"Many people have self-quarantined themselves, following the health precautions, therefore it is expected that once the virus spread slows down, the social climate would improve in the near future," he said.

"Reducing transportation has caused sharp recession in gold and jewelry sale," he added.
"The major cause for increase of gold price despite drop of demands was the rise of foreign currency rate. While the global gold price has dropped but the increase of foreign currency rate has increased the gold price in Iran's domestic market," he said.

Iran is one of the countries heavily affected by the rapidly-spreading coronavirus. According to recent reports from the Iranian officials, over 13,000 people have been infected, 724 people have already died. Meanwhile, over 4,500 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.