Gold Prices in Local Markets Witness Increase of 4%

Gold prices in local markets witnessed an increase of 4%, while the global stock exchange noted a rise of 2.2% for the ounce.

This upward trend was largely influenced by growing anticipations that the US Federal Reserve would conclude its monetary tightening measures and initiate a reduction in interest rates at the upcoming September meeting, alongside heightened geopolitical tensions in the Middle East.

Eng. Saeed Imbaby, CEO of the online gold and jewelry trading platform “iSaaga,” reported that gold prices surged by EGP 135 throughout August.

According to Imbaby, the price of a gram of 21-karat gold commenced trading at EGP 3,310, peaked at EGP 3,500, and concluded at EGP 3,445. Concurrently, the global stock exchange saw an increase of $54, with the ounce starting at $2,449, reaching a historic high of $2,532 on August 20, and closing at $2,503. Imbaby further noted that the price for a gram of 24-karat gold was EGP 3,937, 18-karat gold was EGP 2,953, 14-karat gold was EGP 2,297, and a pound of gold was EGP 27,560.

Data from the "iSagha" platform indicated a 0.6% decline in local market gold prices, amounting to a decrease of 20 pounds during the week ending last Saturday. The price of a gram of 21-karat gold opened at 3,465 pounds and closed at 3,445 pounds, while the global market saw a 0.4% drop, equating to a $9 decrease, with the ounce opening at $2,512 and closing at $2,503.

On the previous Saturday, local markets recorded a modest increase of 5 pounds, with the price of a gram of 21-karat gold opening at 2,440 pounds and closing at 2,445 pounds, coinciding with the global stock exchange's weekly closure.

Imbaby highlighted that the gold markets were witnessing the emergence of unjustified pricing, purportedly for hedging purposes, despite a decline in demand, amid circulating rumors regarding a potential rise in the dollar exchange rate in the local market.

In August, local market gold prices rose by 4%, while the global stock exchange recorded a 2.2% increase in the price of an ounce.