Gold Surges as Global Stocks See High Sell-offs

The price of gold rose in evening transactions on Wednesday by EGP 6 in the Egyptian market, against the rise of an ounce in the global market, registering $1,948, according to Ehab Wassef, Deputy head of the Gold Division at the General Union of Chambers of Commerce

Gold Prices:

18K        EGP  726.85

21K        EGP  848

24K        EGP  969.10

8g Coin  EGP 6,784

Ounce    $1,948

On Wednesday, gold prices fell in the morning, as the dollar's rise overshadowed the support caused by the decline in global stock markets, while investors awaited monetary policy strategies from central banks this week.

Locally, gold recorded a EGP 7 drop in the morning, on the back of the ounce's decline to $1,927, yet, prices took their way up after gold rose globally.

the precious metal fell in spot transactions 0.3% to $1925.97 an ounce, and US futures fell 0.5% to $1933.80, before prices rose to $1,948.

"Traders in Asia will be cautious, preferring to wait until trading begins in New York and see clearer evidence of whether the rise in the US dollar and the stock market sell-off will continue," said Jeffrey Haley, chief market analyst at Oanda, adding that a deeper correction below $1,900 can't be ruled out if the dollar remains strong.

The dollar index rose near its highest level in a month against its rivals, which puts pressure on the appetite for the yellow metal, yet gold received some support with the decline in Asian stocks, following the sell-off led by shares of technology companies on Wall Street yesterday, forcing investors to resort to safe havens.

Investors are currently awaiting the results of the European Central Bank's (ECB) policy meeting scheduled for Thursday.

The EuroStoxx 600 rallied 0.9%, and the Nasdaq 100 index of US-listed tech stocks headed for a 1.5% rise at today's opening, trimming its plunge from last Wednesday's new all-time high.

Meantime, investors will await the bank's inflation forecast, yet, major policy steps are not expected as the bank has moved aggressively to support the virus-ravaged economy.