Karim Soliman, a gold trader, said that the local market is currently experiencing a significant shortage of gold bullion products across various weights and brands, driven by a sharp increase in demand from investors and individual buyers as gold prices retreat from the record highs reached earlier this year.
Soliman explained that many bullion-producing companies are facing growing pressure to meet rising orders, resulting in limited availability among retailers and distributors. He added that the market is also witnessing a near-complete absence of locally produced bullion, further widening the gap between supply and demand.
He noted that the recent correction in gold prices has encouraged a large segment of consumers to view the decline as an attractive buying opportunity, prompting renewed interest in building gold investment positions amid ongoing uncertainty in global financial markets.
According to Soliman, current demand is heavily concentrated in gold bars and gold coins, which remain the preferred investment vehicles due to their lower fabrication costs and higher suitability for savings and wealth preservation. This trend has led to a rapid depletion of available inventories across the market.
He emphasized that investment demand for gold remains resilient despite recent price volatility, as many buyers consider current price levels attractive compared with the historic peaks recorded earlier this year.
Market participants believe that the continued shortage of bullion products, combined with strong investment demand, could provide additional support for the gold market in the coming months, particularly if global gold prices resume their upward trajectory or if economic and geopolitical uncertainties intensify, reinforcing gold’s role as a safe-haven asset and store of value.
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