Gold Prices slightly increased today, Thursday, in local markets regardless of the decline of the ounces in the world exchange market, recording $1744, bringing gold to its lowest level since November 2021.
This is due to the dollar strength and expectations of the US Federal Reserve to potentially raise the interest rates by 50 or 75 basis points during the next meeting at the end of the month.
Said Imbabi, Executive Director of the “i-Sagha”, said that gold prices rose slightly in local markets by about EGP 3.
He also shared that the 21-karat gold recorded EGP 965, the 24-karat gold reached EGP 1103, 18-karat registered EGP 828, 14-karat gold is sold at EGP 644, and the gold pound hit EGP 7720.
The executive director pointed out that the pound's decline against the dollar in the local market reduced the decline in gold prices, as the dollar exchange rate in Egyptian banks recorded EGP 18.89, noting the dollar lost more than 25% of its value since March 21, after it recorded its lowest level on Tuesday.
Imbabi explained that the main reason for the decline in gold prices in the local markets is the decline in prices on the global stock exchange.
He noted that the ounce from March to May recorded between $2052 and $1873, and then reached $1744, pointing out that gold prices extended their retreat to fall and had affected the local price.
The executive director added that the decline in demand and the relative stability of the dollar exchange rate in the local market also contributed to the conclusion of transactions at real prices.
He noted that the current prices make sense and are commensurate with the global price, unlike the trading prices during the period from March to last May, which witnessed a kind of manipulation according to consumers.
Imbabi pointed out that consumers who bought gold, whether crafted or bullion and pounds during that period and want to sell now, will lose part of their savings due to the prices being unfair and exaggerated.
He added that investing in gold is a medium-term investment, in which the appropriate time to buy and sell needs to be taken into account, noting that the consumers must wait until prices rise again, and then sell at high price points to compensate for the loss.
Imbabi pointed out that now is also a good time to buy because the point of sale is low and then these consumers can compensate for part of the loss, through the average total of high and low prices.
He added that the chances of gold rising are strong, due to the high rates of inflation, and expectations of a stagflation wave, as a result of the ongoing Russian-Ukrainian crisis.
Contributed by Yara Sameh
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