Gold prices rose in domestic markets by EGP 235 from the beginning of this March until the end of this week’s trading, recording an increase of 14%.
21-karat gold opened the month's transactions at EGP 1675, and at the end of the week's trading yesterday, Saturday, it recorded EGP 1910, according to the report of the Market Research Department of the "Dahab Misr" Company.
The report indicated that the ounce rose by $90 on the global stock exchange, during the same period, recording an increase of 5%, as March trading opened at $1815 and recorded at the close of trading yesterday at $1905.
On his part, Fadi Kamel, the Executive Director of the "Gold Egypt" gold trading company, said gold prices are under varying pressures during the current period.
Kamel pointed out that the local market witnessed an increased demand during last week’s trading, as a result of expectations that the central bank would reduce the exchange rate of the pound against the dollar, and
What reinforces the expectations is the noticeable declines of the pound against the dollar, and the rise in inflation rates after the Central Bank revealed that the annual core inflation rate recorded 40.3% in February 2023, compared to 31.2% in January, according to Kamel.
He expected that the Central Bank would raise interest rates by about 3% during its next meeting, to curb the increasing inflation rates.
Kamel pointed out that the demand in the domestic markets is still concentrated on bullion and pounds, in exchange for a limited decline in the demand for gold jewellery, as the demand is directed to invest during the current period with the desire of investors to preserve their savings.
Contributed by Israa Farhan