Gold prices slightly fell, in domestic markets, today, Wednesday, despite the increasing prices of the yellow metal ounce globally. They increased due to the decline in the USD, US bond revenues. In addition, the markets are still anticipating the US inflation report that will be released tomorrow. The inflation report would provide clear indications about the US Federal Reserve’s directions to determine the interest rates in the next period.
Saeed Embabi, CEO of the Isagha platform, said that gold prices, domestically, declined by about EGP 5 today. He added that the gram of 21-karat gold recorded EGP 3225, while the ounce rose by $3, to reach $2033.
He added that the gram of 24-karat hit EGP 3686, 18-karat recorded EGP 2764, while 14-karat estimated EGP 2150, and the pound of gold recorded EGP 25800.
Embabi explained that the decline in gold prices in local markets was due to the increase in supply after the citizens tended to sell their gold possessions and benefited from the monthly returns on the newly released bank investing certificates.
Embabi added that the surge of the prices and inflation rates led to the erosion of family income, which prompted some of them to look for a way to improve the rate of monthly spending, including certificates, unlike gold, which brings profits in the long term, however, they wouldn't benefit monthly.
He continued, that the percentage of money deposited in the certificates represents about 80%, which makes the certificates better for these people, to obtain a monthly return.
Embabi pointed out that the gold markets were motivated by the revenues of maturity of the previously released certificates with a return of 25% to people. They expected that it would help in raising the prices but the reverse selling movement led to an increase in supply and a reduction in prices.
He concluded that the market is also witnessing good demand, which restricted the decline of prices, but the reverse selling movement created a balance between supply and demand.
Contributed by: Rana Atef
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