Gold prices in local markets saw a 0.5% decline during the past week, concluding on Saturday evening, while prices in the global market experienced a 0.5% increase by the end of trading on Friday. This divergence in trends reflects the dynamics of local and global markets and growing expectations that the U.S. Federal Reserve may accelerate interest rate cuts in the first half of 2025.
Saeed Embabi, Executive Director of iSagha, an online platform for trading gold and jewelry, noted that local gold prices dropped by EGP 20 per gram over the week. The price of 21-karat gold opened at EGP 3,800, briefly dipped to EGP 3,750, and closed at EGP 3,780 per gram. Meanwhile, gold prices on the global market rose by $14 per ounce during the same period, starting at $2,689 and ending at $2,703.
The liquidity shortage in local markets has been a significant factor driving the disparity between domestic and international gold prices. Earlier in the week, the price gap reached as high as EGP 100 but narrowed to around EGP 45 by the week’s close. This gap highlights ongoing challenges in balancing supply and demand in the local market, particularly during times of economic fluctuation.
Despite this disparity, gold remains a crucial investment asset for many in the local market. As of the latest data, the price of 24-karat gold stood at EGP 4,320 per gram, 18-karat gold at EGP 3,240 per gram, and 14-karat gold at EGP 2,520 per gram. The price of a gold sovereign, consisting of 8 grams of 21-karat gold, reached EGP 30,240.
The interplay between local liquidity constraints and global market movements continues to shape pricing trends, making the gold market a focal point for both investors and consumers. With global economic factors such as Federal Reserve policies influencing international prices, local markets remain sensitive to supply shortages and currency dynamics, further amplifying the gap between local and global rates.
Follow the latest news on Google News
