What Are the Reasons Behind Recent Drop in Gold Prices?

On Tuesday, the head of the General Division for Gold and Jewelry at the General Federation of Chambers of Commerce Hani Milad shed light on the key factors contributing to the sharp swings in gold prices over approximately a month and a half. The policy introduced by the cabinet permitting Egyptians returning from abroad to bring in gold without paying customs has been a significant catalyst.

In detailing this unprecedented time, Milad noted a rapid surge in gold demand. The yellow metal became scarce as citizens engaged in a buying frenzy, driving up prices beyond the usual market standards.

Milad further elaborated on the powerful impact of the positive measures implemented recently. An almost complete alignment has been observed between the domestic and global gold prices, significantly reducing a previously wide gap. "We're now on par with the global level," Milad asserted.

He further stated that the current circumstances are ideal for initiating purchase operations. Milad suggested that it's improbable for individuals to start selling their gold reserves for fear of potential losses. Given the risk associated with selling when the gold pound price is at 15,000 Egyptian pounds, the current rate of 17,000 Egyptian pounds is deemed to be a fair value.

The insights from Milad provide a comprehensive overview of the factors influencing the gold market in Egypt, underlining the effects of these market shifts on both the national economy and individual investors.