Global Gold Prices Soar by 13% in 2023 Amid Economic Fluctuations

The year 2023 has marked a notable 13% increase in global gold prices, the highest annual gain in the past three years. This escalation is attributed to the devaluation of the US dollar, along with an increased demand influenced by persistent geopolitical conflicts in the Middle East and expectations of the US Federal Reserve cutting interest rates in early 2024.

Said Embabi, Executive Director of "iSagha," an online platform for gold and jewelry trading, noted a significant jump in the global market, with gold prices rising by approximately $237 per ounce throughout the year. The price opened at $1,825 per ounce, peaked at $2,153, and concluded the year at $2,062 per ounce.

In Egypt, gold prices mirrored this global trend, with an increase of around EGP 10 per gram observed on Saturday compared to Friday's close. Detailed price points included 24-karat gold at EGP 3,612 per gram, 18-karat at EGP 2,709, 14-karat at EGP 2,107, and the gold pound at EGP 25,280.

Embabi further highlighted a daily increase of EGP 25 in the price of 21-karat gold during Friday's trading, starting the day at EGP 3,125 and closing at EGP 3,150, while the ounce price experienced a slight dip from $2,067 to $2,062.

Looking ahead to January, Embabi predicts a revitalization in the gold market, especially with the upcoming maturity of high-yield bank certificates. This expectation aligns with the ongoing depreciation of the Egyptian pound against the dollar, which has reached about EGP 53 in the parallel market.