Gold Prices Rise Significantly as Refineries Suspend Production

Gold prices rose on Tuesday in the local market by EGP 34 in conjunction with its rise in the global markets to the level of $1611, after hitting $1688 earlier in the trading.

According to Nady Naguib, the secretary of the gold pision at the Federation of Egyptian Chambers of Commerce (FEDCOC), the 18K recorded EGP 612, while the 21K scored about EGP 712, while the 24K reached about EGP 812.

The the secretary of the gold pision added that the 8g golden coin reached the level of EGP 5696.

Globally, the yellow metal continued its gains during Tuesday's trading to climb above $ 1,600 an ounce, benefiting from the unprecedented measures announced by the Federal Reserve.

Yesterday, the Fed announced purchasing an unlimited amount of Treasuries and mortgage securities to support the financial market.

Meantime, three of the world’s biggest gold refineries, including Argor-Heraeus, Valcambi and PAMP have suspended production in Switzerland for at least a week as non-essential industries are being closed. The three refineries produce around a third of the total global annual supply.

Gold prices posted their biggest daily gain in more than a decade in the wake of the closure of gold mining operations to help curb the spread of the coronavirus.