Gold prices have stabilized in local markets in today's trading, in light of the closing of the ounce trading on the global stock exchange, recording 1830 dollars yesterday, Friday.
Eid Youssef, the Head of the Menofia Chamber of Commerce’s Gold Division, said that the gold prices in the local markets are witnessing a state of stability during today's trading, and 21-karat recorded EGP 1006.
He added that 24-karat reached EGP 1150, while 18-karat was estimated at EGP 862, and the gold pound recorded EGP 8048.
Youssef pointed out that the local gold markets are witnessing stability after the decision of the Monetary Policy Committee of the Central Band last Thursday, to fix the interest rate on deposit and overnight lending at 11.25%, 12.25%, and 11.75%, respectively.
He explained that gold prices in global markets rose slightly yesterday, by 0.1% to record $1825 an ounce after previously touching the lowest level in one week at $1816, due to the dollar's decline by more than 0.2%.
Recession fears pushed investors to safe havens, but expectations that the US Federal Reserve will raise interest rates next month limited gold's gains.
Youssef noted that gold is a way to hedge against inflation, but high-interest rates in the US increase the opportunity cost of holding it.
He expected a revival of sales in the actual markets, as merchants prepared for the engagement and wedding season, with the start of the school vacation season, the arrival of Egyptians working abroad, and the blessed Eid al-Adha holidays.
Contributed by Israa Farhan
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