Local gold prices increased during trading on Wednesday, following the rise of the ounce on the global market, driven by political uncertainty and increased bets on further interest rate cuts by the Federal Reserve, according to a report by the "iSagha" platform.
Engineer Saeed Imbaby, the executive director of the "iSagha" online gold and jewelry trading platform, said that local gold prices increased by EGP 10 during today's trading, compared to the close of yesterday's trading, bringing the price of a gram of 21-karat gold to EGP 3,800, while the ounce on the global market rose by $10 to reach $2,753.
Imbaby added that a gram of 24-karat gold reached EGP 4,343, a gram of 18-karat gold reached EGP 3,257, while a gram of 14-karat gold reached about EGP 2,520, and the gold pound reached about EGP 30,400.
According to the daily report of the "iSagha" platform, gold prices in the local markets increased by about EGP 25 during yesterday's trading on Tuesday, as the price of a gram of 21-karat gold opened trading at EGP 3,765 and closed at EGP 3,790, while gold prices on the global market increased by $35, as the ounce opened trading at $2,708 and closed at $2,743.
Imbaby explained that the decline in demand and the increase in supply prompted raw gold traders to export, to provide liquidity and foreign currency, and thus reduced the purchase prices from citizens to EGP 3,775 per gram of 21-karat gold, knowing that the export price of a gram of gold reaches EGP 3,920.
He added that local gold prices are about EGP 120 lower than the global market, and the fair price for a gram of 21-karat gold is about EGP 3,920.
Imbaby added that the current prices are a good opportunity to buy, as they will not last long, as the consumer buys a product at a discount of up to EGP 120 per gram.
He pointed out that the tendency of consumers to sell their gold holdings represents a loss, and therefore selling is not recommended at this time.
He indicated that the price of gold on the global market is trading near its highest level since November 1st, due to uncertainty about US President Donald Trump's trade policies, which pushed investors to hedge with gold.
He added that expectations of the US Federal Reserve cutting interest rates twice this year boosted demand for gold.
US President Donald Trump said he intends to impose 25% tariffs on Canada and Mexico, and the target date for the tariffs will be in early February.
Trump's statements about tariffs raised concerns about a new wave of global trade war, which boosted demand for safe-haven assets and pushed the price of gold to its highest level since early November.
Signs of slowing inflation in the United States have revived bets that the Federal Reserve may not rule out the possibility of cutting interest rates by the end of this year, leading to a decline in US Treasury yields.
Meanwhile, markets are awaiting the Bank of Japan's decision on Friday, which could sow volatility in financial markets and affect the precious metal as a safe haven.
Preliminary purchasing managers' index data will also provide insight into the health of the global economy tomorrow, Thursday.
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