Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Local Gold Prices Remain Suspended Amid 0.8% Decrease in Global Market

Gold Service

Sat 10 Feb 2024 | 10:26 PM
Waleed Farouk

Local gold markets in Egypt continue to suspend price updates and halt buying and selling activities in line with the weekend break of the global exchange.

Eid Youssef, head of the Monufia Gold Division, stated that the local gold markets are still pausing price movements and sales operations, while the global market saw a 0.8% decline in gold prices during the week ending on Friday evening, influenced by the strengthening dollar and rising US Treasury yields.

The markets are also awaiting the release of U.S. inflation data next week for clearer signals on the Federal Reserve's monetary policy in the upcoming period.

Youssef added that the global market saw a roughly $16 drop in gold prices over the week, opening at $2040 and closing at $2024 per ounce.

The gold markets experienced confusion mid-week on Wednesday due to rumors about the government's intention to devalue the Egyptian pound, leading to another halt in pricing and trading activities.

The fluctuating exchange rates of the dollar in the parallel markets have further contributed to the confusion, especially with the difficulty in pricing and the presence of multiple rates in the market.

The local gold pricing depends on the dollar exchange rate, alongside the global price and supply and demand dynamics.

Some pricing platforms have ceased operations following the evolving situation in the gold market, affected by price manipulation and the circulation of parallel rates by some shops.

The cessation of trading by raw gold traders has led to random pricing practices.

In related news, markets are eagerly anticipating the inflation report scheduled for release next Tuesday, seeking further insights into the US Federal Reserve's monetary policy.