Saeed Imbaby, CEO of the "iSaagha" platform for online gold and jewelry trading, said that the stability of the dollar exchange rate in local markets has led to a significant aligning of the local gold price with global prices over the past year.
He added, in televised statements, that current gold prices are suitable for buying, with the need to wait for a few long periods to reap profits.
Imbaby advised avoiding buying during times when the markets are experiencing successive and sudden waves of increases, as the acceleration of the increases indicates that these levels are illogical and inappropriate for buying.
He pointed out that the price levels witnessed in the gold markets in recent weeks, where the price of a gram of 21-karat gold exceeded 5,000 Egyptian pounds, are considered very high prices and involve significant risk.
He added that consumers who purchased gold at high levels should wait for long periods until prices return to those levels again, to avoid incurring losses when selling. He explained that demand is currently stable, and therefore the market will not experience a supply deficit, especially with the continued suspension of raw gold imports.
He added that the Central Bank's 225 basis point cut in interest rates and the suspension of some savings certificates are not attractive for citizens to withdraw from banks and invest in gold, especially since the maturity dates have not yet arrived.
He pointed out that a 10% interest rate cut will push a significant portion of bank funds into gold, while it continues to achieve record prices.
He continued, saying that the movement of the exchange rate and the price of the ounce will push gold to significant levels, but the stability or decline of the exchange rate with the rise in the price of the ounce will have a limited impact on the price of gold.
Imbaby,indicated that the trend of central banks to purchase gold as part of their abandonment of the dollar will reinforce the rise in the coming period and is an indicator for those seeking to invest in gold for savings, hedging, and profit.
He added that Trump's policies and conflicting statements have been a major factor influencing gold prices over the past period, and therefore, it is impossible to predict the level of price increases with an unstable and uncertain political administration.
He pointed out that Trump's threats to interfere in the US Federal Reserve's policy and dismiss its chairman were a shock to global markets and weakened investor confidence in the dollar. Consequently, countries turned to gold for a temporary and safe alternative.
Imbaby, predicted a de-escalation between the United States and China, and a de-escalation of the trade war, which would consequently lead to a decline or stabilization of gold prices. However, an escalation of the conflict between India and Pakistan would lead to an explosion in gold prices, especially since India is one of the largest gold consumers in the world.
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