“I Sagha”: Gold in Egypt is trading at a price that exceeds the futures contracts for the pound against the dollar

The “i Sagha” platform demanded the Stamp and Scales Authority of the Ministry of Supply and Internal Trade in Egypt, in its capacity as the authority entrusted with it and having jurisdiction over market control, to issue a statement to public opinion revealing the volume of gold companies’ production and stamps of bullion and pounds during the first quarter of 2023. .

This is because the rise in gold prices at this pace confirms an increase in the volume of production and sales to about 3 times at least, according to the mechanism of supply and demand that some take as an excuse to increase prices, quoting a statement from the platform.

Saeed Imbaby, the executive director of the “i Sagha” platform for trading gold and jewelry via the Internet, said that the statement must include the production volume of each company and the size of the stamp, in order to refute the idea of ​​supply and demand, and to reveal companies evading tax that are stamped outside the Department of Stamp and Scales, which opens A door to tampering with calibres, as well as within the framework of preserving the state’s right to collect the tax due.

He added that the volume of production and stamped data will reveal the extent of price manipulation and refute the idea of ​​linking the increase to the supply and demand factor.

The “iSagha” platform had announced the suspension of publishing gold prices during Thursday’s trading until the market adjusted the pricing process, due to the continued state of manipulation adopted by those in charge of the market since the decision to liberalize the exchange rate last year, which led to the adoption of unfair local pricing characterized by exaggeration. It is not linked to market determinants such as global stock exchange prices, the official dollar exchange rate and the supply and demand mechanism.

Imbaby explained that the platform is not a pricing entity, but it plays an intermediary role between the pricing entities of raw gold dealers and consumers, and the platform tries to clarify supply and demand trends within the market, and highlight any manipulation and trading of irrational prices, which fulfill the interests and whims of some within the market.

He added that as soon as the platform announced on its pages the suspension of publishing prices, some called on it not to comment and others called on it to back down, and some called on it to report these practices to the concerned authorities, or to take a decisive stance towards the manipulators.

Imbaby indicated that the current circumstance is a difficult circumstance, and the market is witnessing many variables, and the prices traded in the local markets are effectively separated from the prices on the global stock exchange, and prices are linked to whims and interest.

He added that the pretext of supply and demand is resorted to by manipulators to hide their crime against citizens, and the market interacts with the movement of global price hikes, and separates from it at the time of decline, and the price of the dollar announced by the Central Bank is relatively stable, as well as prices in parallel markets.

He pointed out that the price of gold trades locally according to the exchange rate of the dollar, exceeding futures contracts, urging that it recorded about 50 pounds during Thursday’s trading.

He explained that gold prices rose yesterday by about 240 pounds, in light of the decline in the global price and the stability of the dollar exchange rate.

He pointed out that the increased demand will not move prices at this pace, especially since silver prices are trading at approximately the same levels in light of weak demand for them locally, which proves suspicion of price manipulation.

He added that whoever possesses supply and demand data in the gold markets, in order to present it to the public opinion, added that it is one of the influences in increasing prices.

He pointed to the need for the concerned agencies to move to preserve the savings of citizens and put forward fair prices that are compatible with international prices, the fair exchange rate, and the real supply and demand mechanism.