Gold prices dropped by EGP 280 in two weeks in domestic markets as 21-karat recorded EGP 1300 on May 9; it declined by EGP 100 yesterday, recording EGP 1020, instead of EGP 1120.
The latest decisions issued by the Central Bank of Egypt about increasing the interest rates by 2% affected the performance of the gold after the interest rates became 11.25% for deposit and 12.25% for lending.
Gold prices fell to EGP 1000, before it rose again by EGP 20 in the light of the increase of gold ounce prices to $1848, marking the first positive performance for the yellow metal in five weeks in the world exchange.
The CEO of gold trade platform Isagha Saied Embabi explained that the process of buying gold declined despite of the fallen prices due to citizens’ concerns over the decision of the CBE.
Embabi said 24-karat EGP recorded EGP 1166, and 18-karat hit EGP 875. Finally, the gold pound was estimated at EGP 8160.
In the same context, Embabi highlighted that the platform gathered the data of all gold trading processes locally, and globally for the period between May 1 and 10, asserting that the prices announced in the domestic markets during the previously stated period were not real, and it is lower than the international records by EGP 200.
The gold fluctuation caused several customers more losses as they bought the gold at high prices before the prices declined shortly.
He concluded that those actions by some traders drove costumers to distrust gold as a safe investment due to the losses they face during hard times which requires the presence of a strong market monitoring methodology.
Contributed by Rana Atef
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