Gold Drops by EGP 520 in Week, Markets Unstable

Last week, domestic gold markets were unstable due to the temporary halting of trading, and the major vast in prices between official and parallel markets.

Saied Embabi, the Executive Director of the Isagha platform, said that gold prices dropped, domestically, by 13% (EGP 520). The gram of 21-karat reached EGP 4100 before falling to EGP 3560.

On the other hand, gold prices increased, internationally, by 1%, opening the weekly transaction at $2019, and closing at $2040 after the speculations of the US Fed's intention to decrease the interest rates.

Embabi added that the gram of 24-karat recorded EGP 4069, 18-karat hit EGP 3052, and 14-karat reached EGP 2374, in addition, the gold pound recorded EGP 28480.

Embabi highlighted that the reports about the potential agreement between Egypt and IMF, and the new mega investments in Ras Al Hikma drove USD and gold to fall in domestic markets, adding that gold may see more decline.

He pointed out that the instability of markets drove the markets to follow the path of the black market traders and exhibit overpriced products, therefore, Isagha suspended pricing gold due to the wide manipulation by the traders, followed by the halting of the trading process.

Egypt's central bank raised the overnight interest rates by 2% to reach 22.25% for lending and 21.25% for deposits, while the US Fed kept the interest rates unchanged.

Contributed by: Rana Atef