After a successive wave of rises and recording record levels, calm has returned to the gold market in Egypt, with prices witnessing significant declines during recent dealings.
The 21-carat gram, which is the most traded in the Egyptian market, recorded a level of 2,630 pounds, compared to about 3,000 pounds at the end of last week’s trading. While the price of an 18-carat gram was about 2254 pounds. The price of a 24-carat gram decreased to 3005 pounds. The price of the gold pound was about 21040 pounds.
As for the prices of bullion, the gold ingot recorded a weight of one gram, about 3003 pounds. The price of the gold ingot, weighing 2.5 grams, was about 7512 pounds.
The gold bar weighed 5 grams, about 15025 pounds. The price of a 10-gram gold bar was about 30,050 pounds. The price of the gold ingot, weighing 20 grams, was about 60,100 pounds.
The price of an ounce of gold weighed 31.1 grams, about 93455 pounds. The price of the ingot, weighing 50 grams, reached 150,250 pounds. The price of a 100-gram gold bar decreased to about 300,500 pounds.
A large number of traders link the rise in gold prices in Egypt to the pound’s losses against the dollar, as the precious metal is priced according to the exchange rates of the dollar on the black market.
The “Gold Billion” report had indicated, earlier, that the current movements in the price of gold in the Egyptian market are exaggerated and do not reflect the real price of gold, especially since the global price per ounce is currently trading around the levels of 1984 to 1989 dollars per ounce. In two consecutive weeks, gold failed to breach the $2000 level and trade above it.
The report indicated that the real reasons behind gold’s rise to these historical levels are internal reasons related to the local market and the current economic and financial situation.
He stated that these irrational increases in gold prices in Egypt are directly due to the sharp increase in the demand for buying gold, and the entry of new categories in the market for purchase, due to many fears of the continued losses of the Egyptian pound against the US dollar.
In addition, the sharp price hike that hit the markets since last year, and the rise in inflation to record levels, made the precious metal top the list of safe havens and hedging tools at the present time.