Azza Abdel Aziz
Dr. Ashraf Ghorab, an economist, said that many citizens resort to investing in gold by buying all kinds of bullion and then waiting for its price to rise, then selling it as a kind of investment, indicating that investing in gold is not a large investment locally as some believe, but it is a sort of investment: from savings by preserving the value of savings and making a profit margin, explaining that gold is known to be a store of value, as it is a long – term investment as an alternative to cash in order to preserve ownership.
Ghorab explained that gold prices depend on a few factors, including the global stock market, as well as the dollar exchange rate. It is assumed that the higher the value of the dollar globally, the lower the price of gold because gold is tied to a basket of fixed currencies Gold because some traders resort to buying dollars from the black market and then adding these increases to the price of gold, which is reflected in its price increase.
He expected gold prices to continue to rise in the coming period as global prices have not reached a peak increase, indicating that his expectation is due to a number of reasons, the first of which is increased investment demand in gold, in addition to the recent report by the US Federal Reserve to raise the interest rate slightly at its meeting next December, underlining that the increase in gold in Egypt is the result of movements in the price of the dollar against the pound, advising not to sell gold during the current period, noting that Egypt’s gold production is estimated at 15.8 tons per year, mainly from the Sukari mine.
The economist explained that international reports indicate that gold could rise in price per ounce in a range between 1,790 and 1,820 dollars by the end of December, following the demand for gold as a safe-haven asset, with the of the value of the dollar following the slowdown in monetary tightening by the US Federal Reserve, explaining that After the meeting of the US Federal Reserve and the declaration of some of its members on the possibility of increasing interest rates by 50 basis points at the next meeting in December, gold took profits following a sharp drop in the value of the dollar against a basket of 6 other currencies and falling US Treasury yields, indicating that the dollar’s decline leads to an increase in attractiveness of gold Gold to buyers in other currencies, increasing the demand for gold and making profits.
