Hany Milad, the Chairman of the General Division for Gold and Jewelry under the General Federation of Chambers of Commerce, has indicated that the gold market is currently experiencing volatility and instability. He stated that the primary reason for the recent decline in gold prices has been an increase in supply coupled with a decrease in demand.
Milad noted that fluctuations in global gold prices also influence local market rates, alongside the dynamics of supply and demand. He forecasted that if inflation rates decline, global crises are resolved, and unstable conditions stabilize, gold prices would likely decrease. However, during times of global challenges, he expects the price of gold to oscillate between rises and declines.
In related developments, local gold prices saw a dip in Wednesday's trading session despite an uptick in the price of an ounce of gold on the global market. This comes amid expectations that the U.S. Federal Reserve will relax its stringent monetary policy in the wake of new economic data supporting this direction. Markets are also keenly awaiting GDP data for April through June, along with the Personal Consumption Expenditures Price Index slated to be released on Thursday.
Milad elaborated that the local gold prices declined by 5 Egyptian pounds in today's trading. Specifically, the price per gram for 21-carat gold was marked at EGP 2,215, while the price of an ounce of gold rose by around 3 dollars, standing at 1,940 dollars.
Meanwhile, the price for 24-carat gold was EGP 2,532 per gram, 18-carat gold was EGP 1,899 per gram, and 14-carat gold was EGP 1,477 per gram. The gold pound was priced at EGP 17,720.
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