Gold prices in Egypt witnessed, today, Saturday, a short while ago (evening trading), a sudden drop in the price of the yellow metal, which led to a decrease in its value of 80 pounds on various bullet prices.
Despite the resounding rise, which gold continued for the second day in a row, yesterday (Friday) it recorded increases of a total of 120 pounds, while today, Saturday, the price of a gram of 21 karat reached about 2450 and even 2500 pounds without workmanship.
Al-Fajr monitors gold prices in Egypt, moment by moment, as part of providing its services to readers, followers, and those interested in gold prices in Egypt:
Gold prices now
18 karat 1988 pounds
21 caliber 2320 pounds
24 karat 2652 pounds
The pound went 18,560 pounds
global gold price
1913 dollars an ounce
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.
