Gold Declines by EGP 520 Domestically in Week

Gold prices declined by 14.6% in domestic markets last week, while the ounce rose by 1.1% internationally, last week due to the rising escalations in the Middle East, and blur statements about the US interest rates.

Saied Embabi, the Executive Director of Isagha platform, said that gold prices declined by EGP 520 in domestic markets, adding that the gram of 21-karat opened the weekly transactions at EGP 3570, and closed at EGP 3050. On the other hand, the ounce opened the weekly transaction at $2013 and closed at $2035.

Embabi added that the gram of 24-karat recorded EGP 3486, 18-karat hit EGP 2614, and 14-karat estimated EGP 2034. The gold pound hit EGP 24400.

Embabi continued that gold prices declined due to the fall in the USD price in parallel markets after the announcement of Ra's El Hekma project and the availability of USD in the markets.

He highlighted that the ability of the government to cover the needs of the USD is the main factor in declining the price of the USD. In addition, the markets of the foreign currency exchange would see more stability. The USD fell from EGP 65 to 57.

The official highlighted that customers should preserve their gold possessions, and don't sell them. He revealed that the latest decline in prices would be temporary, adding that the continuation of USD flow in the Egyptian market is the factor of the end of the current crisis.

Embabi concluded that gold is still a safe economic instrument, that's why customers keep their gold possessions and go to sell them in need of cash. The fall in the prices could be a good chance to buy gold.

Contributed by: Rana Atef