Covered gondolas were the 1960s predecessors of the coil cars we know today. The UP Color Guide to Freight and Passenger Equipment has a picture of an early uncovered flatcar-based coil car, the caption stating "It was soon evident that coil steel required protection from the elements and covered gondolas were developed." A covered gondola is also pictured in regular service with the caption stating "Covered gondolas were devised to protect steel that was subject to weather damage." There are also pictures of a covered gondola in non-revenue service for carrying traction motors between Omaha and Salt Lake City; the car was basically painted like revenue gondolas, except the cover was orange with large black lettering: "KEEP THIS CAR MOVING IMPORTANT COMPANY MATERIAL"
I don't recall ever seeing a steel-covered gondola in service myself, though I have seen them with soft plastic covers. However,
Union Pacific's website does state "Generally, higher quality products, such as coiled steel, steel plate, and high grade ores are shipped in covered gondolas for maximum weather protection."