Gold prices fell in local markets during Thursday’s trading, despite the rise in the ounce on the global stock market, supported by the weakness of the dollar and the decline in Treasury bond yields, after the US Federal Reserve stabilized interest rates.
Said Imbabi, Executive Director of the “i-Sagha”, said that gold prices fell by EGP 5 in the local markets during today's trading, amid the local market awaiting the decision of the Monetary Policy Committee of the Central Bank to set interest rates later in the day.
He noted the gram of 21-carat gold recorded EGP 2545, and the price of an ounce rose by $5 to reach $1986.
Imbabi added that the 24-carat gold reached EGP 2909, 18-carat registered EGP 2182, 14-carat gold sold at EGP 1697, and the gold pound hit EGP 20360.
Gold prices in the local markets fell by EGP 25 during yesterday’s trading.
The 21-carat opened trading at EGP 2575 and closed at EGP 2550.
Meanwhile, the ounce fell on the global stock market by $4, with transactions beginning at $1985 and concluding at $1981.
Imbabi pointed out that there is a misinterpretation in the media about the decision of the Minister of Supply and Internal Trade to ban the trade, export, or import of gold to unauthorized persons and establishments.
He explained that the decision is targeting the non-specialized and concerned companies from other sectors, which use gold as a means to provide the dollar through import and export operations in foreign markets.
"Hence, the state is trying to organize and tighten control over the gold markets, and to ensure that the proceeds of gold exported from the dollar return and enter the central bank within 30 days," Imbabi noted.
He added that the decision must be interpreted in light of its relation to the recent decision of the Central Bank regarding amending the period for following up on the receipt of export proceeds of gold jewelry, which in turn follows up on gold export operations within 30 working days from the date of shipment, instead of 7 working days.
Imbabi pointed out that the use of gold by companies outside the market to provide the dollar puts pressure on local stocks, and raises gold prices to levels higher than the global level, as a result of high demand.
"The country also loses access to the dollar in light of the dollar liquidity crisis," he noted.
The Minister of Supply and Internal Trade, Dr. Ali Moselhi had issued Resolution No. 149 of 2023 prohibiting citizens or practitioners from engaging in trade, exporting, or importing precious metals and valuable stones until they register at the Assay and Weights Administration.
These are the registration requirements: commercial record, commercial card, a statement of the headquarters designated for the trading operation, trademark, and the commercial development manager of the facility.
Contributed by Yara Sameh
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