Gold Prices Rally in Egyptian, Global Markets

Wed 29 Jul 2020 | 09:17 PM

Taarek Refaat

Gold prices rose in the Egyptian market by about EGP 7 within Wednesday's trading, in conjunction with its rise globally to $1,954 per ounce.

Ehab Wasef, deputy head of the gold pision at the Cairo Chamber of Commerce said the price of gold recorded today EGP 996.5 for 24k, the 21k reached about EGP 872, and the 18k scored about EGP 771, while the 8g gold coin recorded EGP 6,957.

Globally, gold prices rose during today's trading, with concern about the increase in cases of the coronovirus (COVID-19) and possible inflation expectations following further stimulus measures.

The yellow metal received support from the weakness of the US currency, which coincides with the increasing incidence of the epidemic globally and in the United States in particular.

Gold increased almost 30% in 2020, and traders flocked to gold and other precious metals as the US dollar depreciated.

Silver also rose about 35% this year to around $ 24 an ounce.

The Fed's stimulus, lower bond yields and the weakening US dollar are the main reasons for the gold rally, making $ 2000 an ounce inevitable.

Gold benefited from the prospects of a new $1 trillion stimulus package, prompting investors to turn to the precious metal as a safe haven against inflation.

Gold hit a new record as the dollar weakened, and Goldman Sachs raised its 12-month forecast for precious metals to $ 2,300 an ounce from $ 2,000.