Answer: Wearing gold and gold jewellery such as rings, chains, necklaces, bracelets, or gold watches is forbidden for men in this world, whether during prayer or not; and praying with them is invalid. Various reasons for this ruling can be mentioned, which will be discussed in the following points.
First Point: Philosophy of Rulings:
Many Islamic scholars believe that the established rulings are based on interests and harms; meaning that God has mandated or recommended an action due to the benefits it contains, or declared an action forbidden or disliked due to its harms. Scholars in explaining the reasons for the rulings have compiled books in which the reason or philosophy of the rulings, based on narrations from the Infallibles, is explained. These books are colloquially called "Ilal al-Shara'i" (Reasons of the Laws). The reason for the legislation of rulings can be one or several; as some narrations mention multiple reasons for the legislation of a ruling. Therefore, the statements of the Infallibles regarding the reasons for the legislation of rulings should not be interpreted as if the only reason for the ruling is this alone; as there may be other reasons intended which the Infallible did not mention in that narration. In short, definitely, every Islamic ruling has one or more reasons, some of which are mentioned in the narrations, and perhaps there are other reasons that are not mentioned in the narrations and intellectual speculation in this area will not lead anywhere, and one must suffice with the content of the narrations.
Second Point: Philosophy of the Prohibition of Gold for Men in This World:
In establishing the prohibition of gold for men in this world, none of the Shiite scholars have referred to the narration mentioned in the question, and based on this; they have not issued a fatwa declaring the use of gold forbidden for men. The basis of the rulings by Shiite jurists are the narrations that explicitly declare the use of gold for men in this world as forbidden and its use is only permissible in Paradise. Even in the famous books of "Ilal al-Shara'i", this narration is not mentioned, and other reasons for the prohibition of gold for men have been listed. This narration is primarily mentioned in the books of Sunni traditions and has been used by them. Even if the content of the narration is accepted, one cannot conclude that the only reason for the prohibition of gold for men was the sighting of the essence and reality of gold by the Holy Prophet Muhammad (peace be upon him & his progeny). It is entirely reasonable to accept that seeing gold in a man's hand like a piece of fire is due to these same harms; meaning, this piece of fire represents the harms that exist in the use of gold for men in this world; but since Paradise has its own rules and laws, the use of gold there is not problematic and is considered one of the blessings of Paradise.
Conclusion The legislation of rulings is based on real interests and harms, some of which are mentioned in the narrations, and from stating one or a few cases, one cannot conclude that a certain ruling has no other reason. Regarding the philosophy of the prohibition of gold for men, it was said that one should not confuse the reason and the cause. The reason for the ruling are the narrations that explicitly declare the use of gold for men in this world as forbidden; however, the cause of the ruling can be one or several cases that have not been much reflected in the narrations. What is mentioned in the question is also only present in Sunni sources and, even if accepted, firstly, other possible reasons can also be considered, and one should not regard this case as the only reason for the legislation of this ruling, and secondly, even this case can be considered a representation of the harms that exist in the use of gold for men in this world; thus, one cannot conclude from this image that this ruling does not regard real harms and that the reason for its legislation is only seeing this symbolic and visionary image by the Prophet Muhammad (peace be upon him & his progeny).