Gold prices increased by 6.3% in domestic markets, last week, following a rise in gold ounce prices in international markets by 6%; the biggest weekly revenues for gold since March 2023. This rise was driven by the interest of investors to direct to gold as it is a safe economic instrument during crises and geopolitical tensions.
Saied Embabi, the executive director of Isagha platform, said that gold increased by EGP 225 in domestic markets. The gram of 21-karat gold opened the weekly transaction at EGP 3555, and closed at EGP 3780. In the same context, the ounce opened the weekly transaction at $2563, and closed at $2716.
The gram of 24-karat recorded EGP 4320, 18-karat estimated at EGP 3240, and 14-karat recorded at EGP 2520. The gold pound reached EGP 30240.
Embabi explained that gold prices increased in domestic markets due to the international rise in gold prices, and the jump in USD prices in the local markets.
He added that gold gained its best weekly revenues due to the increasing tensions between Russia, and Ukraine, the conflicted US Economy data, the anticipated decisions of the US Fed, and the interest of investors to direct to gold as it is a safe investing, and saving instrument.
The Isagha official expected that gold prices could see another increase in case of the rise of more military escalations in the Russia-Ukraine War, especially with the continuation of central banks to buy gold.
He revealed that US Fed monetary restrictions impacted gold as the possibility of the interest rate decrease declined in December from 82.5% to 53.
Current conditions refer that current geopolitical escalations could drive gold prices to exceed $3000 for the ounce, in 2025.
Contributed by: Rana Atef
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