On Monday, local gold prices showed relative stability, despite global uncertainties and rising geopolitical tensions in the Middle East. Meanwhile, the price of gold ounces on the international market has surged, approaching record highs.
This increase is driven by ongoing geopolitical risks and comments from the US Federal Reserve Chairman about potential interest rate cuts.
According to Saeed Imbabi, CEO of the online gold and jewelry trading platform "iSagha," gold prices have been relatively stable in the local market compared to the end of trading last Saturday, which marked the close of the previous week's trading. Currently, 21-carat gold is priced at 3,465 EGP per gram, while the global price of an ounce has risen by $12, reaching $2,524.
Imbabi provided further details, noting that 24-carat gold is priced at 3,960 EGP per gram, 18-carat gold at 2,970 EGP per gram, and 14-carat gold at 2,310 EGP per gram. The gold pound is valued at 27,720 EGP.
The previous week saw a 0.6% decline in local gold prices, with a 21-carat gram dropping by 20 EGP. It began the week at 3,485 EGP, dipped to 3,440 EGP, peaked at 3,495 EGP, and closed the week at 3,465 EGP. In contrast, global gold prices rose by 0.2%, with a $4 increase, as the ounce opened the week at $2,508, reached an all-time high of $2,532 on August 20th, and ended the week at $2,512.
Imbabi predicts that the local market will experience a slowdown in sales due to the annual closure of gold companies and factories, which is expected to last a week and coincide with the closure of some retail stores.
Despite the local market's stability, global gold prices continue to climb. This rise is attributed to the safe-haven demand fueled by escalating geopolitical tensions in the Middle East and growing confidence that the US Federal Reserve will cut interest rates.
The increasing tensions in the Middle East are a significant factor driving the demand for gold, as investors seek to hedge against potential economic instability. The ongoing conflict between Hezbollah in Lebanon and Israeli forces, coupled with fears that Iran may become involved in the conflict after weeks of threats, has intensified these concerns.
Imbabi emphasized that any escalation involving Iran could lead to unprecedented tensions in the region, which would likely cause gold prices to soar to unforeseen levels. Gold’s value typically increases during periods of market volatility and economic uncertainty, making it a preferred investment during such times.