During these hours, gold prices in Egypt witness historical moments affecting the industry and trade of the yellow metal, in light of an unknown fluctuation in gold prices, to record increases in two days. The price of a gram reached 2450 to 2500 pounds from the level of 2170 pounds.
During the middle of trading, gold prices witnessed slight declines, followed by limited increases that did not exceed the range of 10 pounds at a time.
Sources related to the gold division revealed the circulation of adulterated alloys in local markets, and it is subject to fraud, whether in the imported or the Egyptian, indicating the presence of local alloys that do not conform to the specifications in terms of caliber or through filling with copper metal.
The sources pointed out that the surest way to buy bullion is bullion stamped with the Egyptian stamp.
And she gave advice to citizens, to avoid buying from unreliable places, online, or from people, in order to avoid exposure to fraud, while making sure to buy from well-known places and with an invoice, stressing the need to deal with reliable shops, especially citizens who buy bullion abroad, to preserve their money and not being cheated.
The sources pointed out that some gold shops in the local market had discovered bars of imported gold that accompanied the returnees from the Kingdom of Saudi Arabia, stuffed from the inside with copper, or what is known as the “sandwich” method, for brands such as “Pump”.
Local gold prices witnessed a record high during trading today, Friday, to record an increase of 140 pounds per gram of approximately 21 karat in less than 12 hours, after fluctuating in a narrow range of trading for more than a month, and amid complete disregard for the decline in global gold prices.
The price of 21 carat gold, the most common today, Friday, at the time of writing the report, recorded 2320 pounds per gram, which is the highest level it has recorded since last June 12, after it opened today’s session at the level of 2180 pounds per gram, to record an increase of approximately 6.4%, by 140 pounds per gram.
This comes after a long series of trading confinement between the levels of 2150-2175 pounds per gram of 21 carat.
At the same time, we find that the global gold price is trading today at its lowest level in 5 weeks, as the global ounce price recorded the lowest level at $1913 an ounce, so that gold has lost approximately $30 since the beginning of the week, down by 1.6%.
There are a number of reasons that led to the significant rise that we saw in the local gold prices today, which proved that they were not affected by changes in the global price, whether during today’s trading or during the last period that witnessed fluctuation in a weak range, regardless of the rises and falls recorded by the global gold price.
The reasons for the rise in gold prices today in Egypt
– Moody’s, the global credit rating agency, announces a review of Egypt’s credit rating with the aim of downgrading it. It is noteworthy that Moody’s downgraded Egypt’s credit rating 3 months ago to reach the current credit rating at B3, which is 6 degrees lower than the investment grade rating.
– The American Citigroup Corporation lowers its optimistic view of Egyptian bonds due to the government’s weak progress in the file of selling government assets, and that it may not be sufficient to avoid economic risks.
– Egypt’s dollar debt instruments during the month of August were among the worst performing in emerging markets, losing 3%, after a good performance during the past month, after the government announced the sale of assets worth $1.9 billion.
The International Monetary Fund agreed to postpone its first review until mid-September.
– The previous factors were considered by market participants to be ready for a new flotation or reduction in the exchange rate of the pound against the dollar.
– The rise in the exchange rate of the dollar in the parallel market after a long period of stability, which reflects the growing fears and uncertainty in the markets.
– The demand for bars and gold coins has increased recently, in addition to the average demand for gold artifacts, after suffering for months from weak demand for artifacts.
The aforementioned factors, together, increased pressure on the local gold markets, increased tensions, and returned fears to the markets.
Now, the liquidity has returned to the gold markets again, in addition to the rise in the price of the dollar in the parallel market, and thus the pricing of gold has increased accordingly, so that gold is currently priced in the markets at an exchange rate close to 43.45 pounds per dollar.
Also, the violent changes in gold prices today may be a result of interventions by gold makers in the markets to restore movement to the gold markets after a long period of stability and volatility, and are not due to supply and demand and the logical pricing of the market, especially in light of the decline in gold prices globally.
