“Gold Prices in Egypt Rise Again After Recent Drop: Expert Analysis and Forecast”

07:00 pm

Sunday, May 21, 2023

I wrote – Dina Khaled:

The price of gold has risen again in the local market, as it jumped by about 280 pounds per gram within a week, to record 2480 pounds per gram of 21 karat in transactions this evening, compared to 2200 pounds per gram last Thursday.

Gold continued to compensate for its losses, rising to about 120 pounds per gram today, until trading this evening, after it rose by about 100 pounds per gram yesterday, bringing its total rise to about 220 pounds during the last two days.

The price of a gram of gold fell in the local market by about 600 pounds in about 3 weeks, after it witnessed historical jumps that had not occurred before during the month of April, to record about 2800 pounds per gram of 21 karat on the 27th of the previous month, which is its highest price in its history in the local market. .

Why did prices rise again?

Hani Milad, head of the gold division at the Cairo Chamber of Commerce, told Masrawy that gold prices have risen again in recent days in the local market as a result of increased demand after the significant drop in the price of the yellow metal, especially in the past week, so the price drop represents the best opportunity to buy.

Milad explained that the reason behind the significant decline in gold prices in the last period was caused by doubts that gold prices will continue to decline, which prompted some consumers to sell gold and some of them stopped buying, which led to an increase in the supply of gold.

But the return of gold prices to rise with a remarkable increase in demand last Friday after this decline, led to more demand for gold as a result of consumers’ expectations of its continued rise, and thus more price increase indeed.

Nadi Naguib, former Secretary General of the Gold Division, at the Cairo Chamber of Commerce, agreed with Milad that the return of demand after the prices fell to levels suitable for purchase raised prices, which led to an increase in demand more for fear of a greater rise in prices during the coming period, which actually raised prices. According to what he told Masrawy.

Gold price forecast in Egypt

Naguib expected that gold prices would continue in the coming days, followed by a decline, especially if the increase was large and occurred within a short period.

However, Naguib expects prices to rise over a longer period during the coming months, to return to the level of 2800 pounds or break it to reach the limits of 3000 pounds per gram of 21 carat.

Najib attributed his expectations for the continuation of the short-term rise to the continued demand for buying gold from consumers.

Hani Milad believes that despite the difficulty of predicting gold prices during the coming period, if the current increase in demand continues, prices are expected to continue to rise in the coming days. “.

Gold continued to compensate for its losses, rising to about 65 pounds per gram today, until the middle of trading, after it rose by about 100 pounds per gram yesterday, bringing its total rise to about 165 pounds during the last two days.