Mona Badr, a banking expert and macroeconomic analyst at a renowned Egyptian bank, indicated that the state of confusion in gold markets is driven by the accumulated pressures on Egypt's currency.
The confluence factors like the depreciation of the Egyptian pound against the US dollar, and speculation in the gold market, as well as the dollar, have impacted gold prices and continue to dominate the playing field, Badr explained.
She also mentioned gold prices were sharply higher aided by a sharp drop in Egypt's pound index, and also due to some safe-haven demand for gold following the economic inflation that rattled the Egyptian banks.
"Gold remains safe haven due to the unstable Egyptian pound."
Accordingly, she expected gold prices to remain volatile in the upcoming days due to sharp currency movements.
Contributed by Ahmed Emam
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