Gold prices rose in the Egyptian on Friday by about EGP 10 pounds per gram on the first day of Eid al-Adha, as the 21 karat recorded 1,005, while the best-selling 21K recorded EGP 880.
The 24-Karat Gold hit a new record in market, surpassing EGP 1,000 due to the jump in the price of the ounce globally to $1,977.
Gold prices in Egypt:
18K recorded EGP 754 per gram
21K recordedEGP 880 per gram
24K recorded EGP 1,005 per gram
8g gold coin is EGP 7,040
Ounce of gold recorded $1977
Gold is heading globally towards achieving the best monthly performance in about four and a half years as the dollar fell after negative US data added to doubts about a rapid recovery from the economic decline caused by the pandemic, which pushed investors towards buying the yellow metal, which is considered a safe haven.
Gold spot price jumped 0.4% to $1967.53 an ounce, after it halted a series of gains that continued for nine sessions yesterday, while the gold futures rose 1% to $1961.30.
The US dollar fell to its lowest level in two years and is heading towards the worst monthly performance in ten years, which reduces the cost of the precious metal for investors from other currency holders.
Contrary to US data that showed the largest economic contraction in at least 73 years in the second quarter, and the rise in the number of US jobless claims, the dollar was also affected as President Donald Trump sparked the idea of postponing the US presidential elections scheduled for November 3.
“The weak GDP in Q2 of 2020 highlights the weakness of the economy, and investors are seeking refuge in gold,” said John Sharma, economist at the National Bank of Australia.
He added that the worsening of the coronavirus crises, the escalation of geopolitical tension and the decline in the dollar, could push gold above the level of $2,000.
Gold has risen more than 10% since the beginning of this month, achieving the largest monthly gain since February 2016, and climbed to an all-time high of $1980.57 on Tuesday.
The jump in gold gains since the beginning of the year to about 30% has been driven by the exacerbation of the pandemic and low interest rates globally in light of widespread stimulus from central banks, given that the yellow metal is considered a hedge in the face of inflation and currency depreciation.