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 they sell it as a kind of investment, indicating that investing in gold is not a big investment at the local level as some believe, but it is a kind of investment. From saving by preserving the value of savings and achieving 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 property.
Ghorab explained that gold prices depend on certain factors, including the global stock market, in addition to the exchange rate of the dollar. It is assumed that the higher the value of the dollar globally, the lower the price of gold because gold is linked to a basket of fixed currencies. Gold because some traders resort to buying dollars from the black market and then add these increases to the price of gold, which is reflected in raising its price.
He expected gold prices to continue to rise during the coming period because global prices did not reach a maximum rise, indicating that his expectation is due to a number of reasons, the first of which is the increased demand for investment in gold, in addition to the recent US Federal Reserve report to raise the interest rate slightly during its meeting next December. Pointing out that the rise in gold in Egypt is a result of the movements of the dollar price against the pound, advising not to sell gold during the current period, noting that Egypt’s gold production is estimated at 15.8 tons annually, mostly from the Sukari mine.
The economist explained that international reports indicate that gold may rise in the price of an ounce in a range between 1,790 and 1,820 dollars by the end of December, as a result of the demand for it as a safe haven, with the decline in the value of the dollar as a result of the US Federal Reserve slowing down the pace of monetary tightening, explaining that After the US Federal Reserve meeting and the statement by some of its members of the possibility of raising interest rates by 50 basis points at its next meeting in December, gold achieved profits as a result of a sharp decline in the value of the dollar against a basket of 6 other currencies and the decline in US Treasury yields, indicating that the decline in the dollar leads to an increase in the attractiveness of gold. Gold to buyers in other currencies, increasing the demand for gold and making profits.