02:34 PM
Wednesday 08 January 2020
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I wrote – Sherine Salah:
The price of gold in the local market rose about 27 pounds during the first eight days of the new year, as a result of the global price jump of the yellow metal, coinciding with the tensions in the Middle East and the American-Iranian conflict.
The price of gold globally jumped to its highest level in 7 years during early trading today, Wednesday, surpassing the level of $ 1,600 an ounce, before reducing its gains and falling to about $ 1585 won the American response to the Iranian strike against military sites in Iraq this morning.
The increase in world gold prices was reflected on the price of a gram in the local market, as the price of a gram of 21 carat gold during trading on Wednesday reached about 706 pounds, compared to 678 pounds with the first day in 2020, an increase of 27 pounds.
The price of a gram of 18 carat gold to about 605 pounds, and the price of a gram of 24 carat gold to about 807 pounds, and the price of a pound of gold jumped to 5648 pounds.
The recession in the market
Amid a wave of rising safe haven prices globally, local traders expected the price to continue to rise, amid a recession in buying or selling.
Naji Faraj, a member of the Board of Directors of the Gold Division at the Cairo Chamber of Commerce, explained to Masrawy, the stagnation in sales, that “the high price of gold affects the sales movement in the market negatively.
“In addition, those wishing to sell their jewelry are waiting for prices to reach their highest levels in the hope of achieving greater profit,” Faraj said.
Club Naguib, Secretary General of the Gold Division, at the Cairo Chamber of Commerce, agreed with Faraj, noting that “the high prices create a state of anticipation among customers, which makes the movement of sales in the market almost stopped until another change occurs.”
Expectations of an increase
And the two traders expected that gold prices in Egypt will continue to rise during the coming days, in light of the continuing global tensions.
Faraj said that he expects the price of gold in Egypt to rise from its current level, in light of the current political tensions, indicating that the price of a gram of 21-carat gold may reach 750 pounds.
Club Najib added that with the expectation of higher prices, this time is suitable for those who want to give up gold, as they can benefit from the price difference.
Globally, Margaret Yang Yan, market analyst at CMC Markets, told Reuters that “fears of uncertainty and further escalation in this military confrontation are pushing gold prices higher.”
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