02:00 PM
Sunday 08 May 2022
Posted by Dina Khaled:
Gold prices have witnessed successive increases during the last period, reaching record levels that it has not reached before.
The price of gold yesterday reached 1250 pounds per gram of 21 karat, before returning to decline to 1210 pounds today.
Since the dollar’s exchange rate rose last March, gold rose to unprecedented levels, and the US Federal Reserve – the central bank – raised the interest rate last week to increase the price of gold locally, with the high demand for it as a safe haven.
The price of gold in the local market in Egypt is determined after factors including external and internal factors.
Hani Milad, head of the General Division for Gold and Jewelery, said that the pricing of gold is subject to several factors, the most important of which are the price in global stock exchanges, the price of the pound against the dollar, and supply and demand in the local market.
Milad added that at the present time, what affects the price of gold the most is supply and demand, since a decision was issued to place some restrictions on the import of non-essential goods, the price of gold in the local market has increased due to the lack of supply.
Milad pointed out that the international price has become largely ineffective because there is no import and traders rely only on the quantities in the market.
Milad explained that gold prices usually decline with the rise in the interest rate globally, as investors resort to taking advantage of high interest rates and investing in the dollar, but with the suspension of gold import and the increase in local demand for gold as a safe haven for investment, which led to the rise in prices.