Gold prices in Egypt witnessed a significant rise, with the price of 21-carat gold surpassing 6,500 EGP per gram, amid a global upswing reflected in market fluctuations driven by recent political and economic developments worldwide.
Saeed Embabi, economic expert, told Ahmed Salem during a phone interview on the program "Kalima Akhira" on ON TV that price movements are determined by clear market fundamentals and that the market is operating with precision despite current fluctuations.
He added that some market participants expect gold to continue rising without clear limits, noting that while current price levels are significant, they may experience wide-ranging developments that require ongoing monitoring.
Embabi pointed out that reviewing June's market trends helps in anticipating gold’s direction, emphasizing that upcoming decisions regarding interest rates, particularly in the United States, will be the primary factor shaping prices in the near future.
He explained that any interest rate cuts by the U.S. Federal Reserve could push gold prices to unprecedented levels, potentially reaching $5,000 per ounce, with the possibility of hitting $6,000 by the end of the year if economic and political conditions continue to escalate.
Regarding the local impact of the increase, Embabi said that higher prices do not necessarily translate into increased sales activity, as both consumer purchasing power and traders’ profits are affected. He added that the market is divided into two types of participants: ordinary citizens, who are advised to save and wait before buying, and speculators, who benefit from price fluctuations to secure quick gains.
Embabi concluded his interview noting that although January is not over yet, the market has already seen increases of around 10%, confirming that activity remains strong despite pressures on purchasing power, and stressing that monitoring global political and economic developments remains the key factor in determining gold’s future trajectory.
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