The local gold markets are witnessing a state of stagnation, and a decline in demand, with the rise in gold prices in the local market to historical levels, in which the price of a gram of 21 karat gold exceeded the level of 1520 pounds, in light of the decline in the purchasing power of citizens.
Sayed Zakaria, a member of the Board of Directors of the Trade Union Committee for Workers in the Trade and Industry of Gold and Jewelry in the Federation of Egyptian Workers, said that the rise in gold prices leads to a deterioration in market conditions, as a result of the decline in demand for gold, whether jewellery or ingots and pounds, and it also leads to the exit of a segment of society that used to enjoy a surplus that enables it to buy gold for decoration or investment.
Zakaria added that traders are the first to be affected negatively by the high price of gold, because it limits the profitability of the trader, in addition to the rise in gram strength, as a result of the high cost of the percentage of gold spent during the manufacturing process.
Zakaria expected that the pace of price hikes would continue as a result of the continued decline of the pound against the dollar, especially in the parallel markets, which threatens to close many factories and workshops and lay off skilled workers.
Translated by Ahmed Moamar
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