Gold prices experienced a marginal increase in local markets during Thursday's trading, while the ounce declined in the global exchange, influenced by the rising dollar amidst escalating tensions in the Middle East, prompting gold markets to hedge.
Saeed Imbabi, the CEO of "isagha," an online platform for gold and jewelry trading, stated that gold prices rose by approximately EGP 10 in local markets during today's trading compared to yesterday's close.
The price of 21-karat gold gram reached about EGP 3265, while the ounce dropped by about $8 to reach $2388.
Imbabi added that the price of 24-karat reached EGP 3731, and 18-karat recorded EGP 2799.
Moreover, the 14-karat reached about EGP 2177, and the gold pound recorded nearly EGP 26120.
Gold prices had witnessed relative stability in local markets during Wednesday's trading, with the price of 21-karat opening at EGP 3255, reaching a peak of EGP 3260, and closing at EGP 3255.
Meanwhile, gold prices rose on the global exchange by $16, with the ounce opening at $2396 and closing at $2380.
The ounce on the global exchange had reached its all-time high of $1431 last Friday.
Imbabi indicated that gold prices in the local market are slightly lower compared to the global exchange due to the exportation of raw gold to foreign markets to provide liquidity in local markets.
Furthermore, he mentioned that traders of raw gold resort to exporting to achieve profitable margins, especially during times of reduced demand.
Thus, they try to lower the local price and purchase at lower prices to make some profits through exportation by exploiting the difference between local and global prices.
In a related context, the German bank "Deutsche Bank" expected gold to rise to $2400 by the end of 2024 and to $2600 by the end of 2025.
The bank stated that the increase in investment flows and central bank purchases, alongside escalating geopolitical tensions in the Middle East, would strengthen gold in the upcoming period.
These predictions come amidst uncertainty and lack of clarity about the monetary policy directions of the Federal Reserve and the fate of interest rates, which will impact price movements in the coming period.
Jerome Powell, the chairman of the Federal Reserve, had stated last Tuesday that there was a slowdown in the decline of inflation rates to the bank's targeted level of 2%, which would support the continuation of the current monetary policy.
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