Gold Expert Highlights Reason Behind Falling Gold Prices in Local Markets

Rafiq Ibrahim, the former head of the Gold Merchants Syndicate, confirmed that the local gold markets are currently experiencing a decrease in sales during this period, leading to a drop in gold prices despite the increase in the price of gold per ounce on the global stock market.

He also pointed out that the decrease in demand has led raw gold merchants to export, causing prices to drop below the world price to ensure a profit margin during export operations.

According to Ibrahim, citizens' purchasing behaviors also influence sales activity. When prices go up, sales activity increases, but when prices stabilize or decline, markets experience a slowdown and sometimes even stagnation.

Ibrahim explained that an increase in the pace of export may impact the local gold stock, especially if demand increases and citizens hold onto their gold. He also noted that citizens' inclination to sell for profit and liquidity purposes contributes to the supply in the markets, particularly since Egyptians have a significant amount of gold in their homes. "Supply shortage crises may arise due to increased demand and the continued cessation of imports."