Gold prices jumped in domestic markets, on Wednesday, by EGP 25, after an increase in international markets to hit a new historical record. The latest increase was supported by the statements of the US Fed members which increased the speculations about a decrease in interest rates next September.
Saied Embabi, the executive director of Isagha platform, said that gold prices increased by EGP 25. The gram of 18-karat hit EGP 3330, while the gold ounce reached $2477.
Embabi added that the gram of gold of 24-karat reached EGP 3806, 18-karat estimated at EGP 2854, and 14-karat recorded EGP 2214, and the gold pound hit EGP 26640.
He expressed that the price of gold domestically is cheaper than the international one by EGP 50 due to the desire of gold traders to continue exporting raw gold to gain more revenues.
US Fed President Jerome Powell, last Monday, that the readings of the US inflation expressed that the prices are in the right and wanted direction of the US Fed.
On the other hand, Adriana Kugler and John Williams were partially optimistic that the inflation would back to 2%.
Embabi concluded that the geopolitical tensions could push gold prices to new historical records in the second half of 2024, in addition, that the central banks would resume their process of purchasing gold with varying their sources from international currencies.
The developing markets keep only 5% of their foreign reserves, while developed countries keep 12% of their assessts in gold.
Contributed by: Rana Atef
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