The gold market halted trading on the local market during Wednesday's transactions, pending the adjustment of pricing according to the dollar exchange rate set by the Central Bank.
Engineer Saeed Imbaby, the Executive Director of the online gold and jewelry trading platform "Ay Sagha," stated that gold prices on the local market did not respond to the global market's decline, even after the ounce fell to $2390. The local market closed yesterday's transactions at EGP 3375, which is considered an unfair pricing level. The fair price should be EGP 3325.
He added that the basis for a fair price is that it should be executable through buying and selling transactions. However, even with some announcing prices ranging between EGP 3315 and EGP 3325, these are merely advertised prices, and the actual executed price ranges between EGP 3365 and EGP 3375.
Imbaby explained that the gold price on the local market depends on the price of the ounce on the global market, the dollar exchange rate announced by the Central Bank, and supply and demand. The official exchange rate of the dollar, according to the Central Bank's website, is approximately EGP 49.27, while the exchange rate used for gold pricing exceeded EGP 50.20.
He added that these practices will create a black market for gold or lead to a revival of the black market for the dollar once again. Gold traders should not be partners in this crime that harms the nation's resources during difficult times.
He pointed out that announcing one price for gold and executing transactions at another price is also an attempt to deceive citizens, and a lack of transparency harms the interests of customers who want to invest in gold, which is considered a safe haven, especially with individuals and central banks around the world looking to strengthen their reserves.
Imbaby added that individual purchases of gold are driving the increase in demand, which is evident in countries like China and India in recent periods.
He noted that achieving transparency enhances the strength of the local market and is an attractive factor to stimulate sales, especially with the market returning to a demand for gold jewelry, which represents the real strength of the market in creating added value and generating employment.
He explained that the gold market must focus on the wrong practices that occurred in the past, when some traders were arrested, buying and selling stopped, and customers lost confidence in gold. These practices also led the market to specific products, which caused the suspension of operations in some factories and imposed additional burdens on manufacturers to maintain employment and continuity.
Gold prices on the local market had increased by EGP 20, during yesterday's Tuesday transactions. The price of a gram of 21-karat gold opened at EGP 3355 and closed at EGP 3375, while gold prices on the global market declined by $26. The ounce opened at $2413 and closed at $2387.
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