Gold Hits Record in 2 Months & Half

Gold Prices increased by more than 1%, hitting a new record in two months and a half. The main reason for this increase is the decline of the US dollar due to the slow down of the growth of US employment after the COVID-19 infections loop.

Hany Milad, the Head of the General Division of Gold at the Federation of Egyptian Chambers of Commerce, said that gold gained profits for the fourth week in a row in local and international markets after the US dollar’s fall, the decline the expectations regarding US Federal Reserve's intention to decrease economic stimulations to compete against COVID-19 economic impacts.

He added that gold ounces reached $ 1828 in world exchange, on the other hand, 24-karat recorded EGP 904 in local markets. In addition, 21-karat was estimated at EGP 901, while 18-karat was sold at EGP 678. Finally, the gold pound recorded EGP 6328.

Milad highlighted that investors are buying gold as a safe economic tool against inflation rise resulted from US economic stimulations for competing against Coronavirus, meanwhile, lower interest rates reduce the opportunity cost of holding gold bars that offer no returns.

Contributed by: Rana Atef