Gold prices in Egypt hit a record high on Monday to rise again in the first days of the week, after U.S. stocks slump as investors prepare for damaged earnings season.
According to Nady Naguib, the secretary of the gold pision at the Federation of Egyptian Chambers of Commerce (FEDCOC) the 21k witnessed an increase of about EGP 4 this morning following a global rise in the price of the ounce to record EGP 735, compared to EGP 731 during yesterday's trading.
Meantime, the Secretary of the Division added that the demand of gold is very weak and the goldsmiths are suffering from the decline in sales in light of the high metal price, coinciding with the curfew and the citizens' interest in food and clothing.
However, gold shops began to receive citizens after the closure of three consecutive days in implementation of the decision to close the shops on Friday and Saturday, which was issued as a precautionary measure to prevent the spread of the coronavirus.
The price of gold in Egypt is affected by several factors; the most prominent of which is the price of the dollar against the pound in the local market, which is currently rising, in addition to the prices of ounces on the gold exchange, and economic decisions globally, which contributes to increasing or decreasing their prices in a variable manner throughout the day.
Gold retreated on Monday after investors sold the yellow metal to take profits after its prices reached the highest level in the month.
By the end of trading, gold spot price fell 0.4 % to $ 1682.65 an ounce, after rising to the highest level since March 9, and gold fell futures also fell 1.1 % to $1732.90.
Naguib, however, expected the precious metal to rise again following the profit-taking process, which locked in gains after it has risen appreciably.
Gold prices in Egypt
24k gold recorded EGP 833
21K gold recorded EGP 735
18K recorded EGP 637
Coin (8g) recorded EGP 5880
The Ounce recorded $ 1694
Globally, Gold prices gained $ 14 during Monday's trading, with the US stock market losing hope amid anticipation of the global epidemic developments and its economic impact.
The gains came with the strong losses recorded by US stock markets, as the Dow Jones index lost more than 500 points and as investors await the economic outlook.
The yellow metal reached last week its the highest level since mid March, with investors heading to the possession of the metal, which represents a safe haven.
Concerns persist over the global economic recession driven by the coronavirus and stimulus attempts by the US Federal Reserve, boosting the value of the metal.
At the beginning of today's trading, the price of gold metal futures for June delivery rose by 0.4 %, equivalent to $ 7.30, to record $ 1760.10 an ounce, after losing $ 20 earlier in trading.
The spot price also increased by more than 0.8 % at the level of $ 1710.51 an ounce, winning $ 13.86.
During the same time, the main index of the dollar, which follows the performance of the green currency, stabilized against six major currencies, at the level of 99.519.
Follow the latest news on Google News
