Gold prices declined in the local markets in Egypt, on Saturday, coinciding with the weekly holiday for the global stock exchange. These declines come in light of the stability of the exchange market and the violent decline in dollar exchange rates on the black market during recent transactions.
The price of a 24-carat gram stabilized at 2594 pounds, while the price of a 21-gram gram, which is the most traded in the Egyptian market, fell to 2280 pounds. The price of an 18-carat gram decreased to about 1946 pounds. While the price of the gold pound fell to the level of 18160 pounds.
In his interview with Al-Arabiya.net, Faraj Atallah, a merchant in the Al-Sagha region in Cairo, linked the continuous declines in gold prices in the local market, and the significant decline in the volume of demand, especially after the Egyptian government announced that gold would be allowed to enter with those returning from abroad. Without customs or fees, except for value-added tax (on workmanship).
He explained that some traders see that what is happening in terms of price declines can be called a correction movement, especially since a large number of senior traders were linking gold prices to the dollar exchange rates on the black market, and as long as there is a decline in the dollar exchange rates in the parallel market by more than 5%. , the gold price will continue to decline.
A recent report by “Gold Billion” revealed that the Federal Reserve meeting failed to remove gold from the sideways range in which the precious metal has been moving since the beginning of this June, but the continuation of the sideways movements of gold heralds a near price explosion in either direction.
Last week witnessed the Federal Reserve meeting, during which it decided to fix interest rates unchanged at a range of 5.0% to 5.25% for the first time after 10 consecutive approvals to raise interest rates. The US Central Bank indicated that it will continue to fight inflation and its commitment to reach the target at the level of 2%.
The Fed believes that there is coherence in the economic growth, which raised its expectations to 1% this year from the previous forecast at 0.4%, after the great positive performance of the employment sector and job creation, in addition to the rise in wage levels, which mainly supported inflation.
At the same time, the “Gold of Egypt” gold trading company said that recent transactions witnessed significant declines in the prices of the precious metal, as all fines lost more than 35 pounds, with a decline of more than 1.5%.
And she indicated, according to a statement, that gold prices fell on the global stock exchange by $3, or about 0.2%, during last week’s trading, while gold prices fell in the local markets by about 80 pounds at the end of the week’s trading.
Spot gold prices witnessed a great fluctuation during the past week, to close down from the opening price by only $3, but it recorded during the week its lowest level in three months at $1924 an ounce, for gold to survive a significant decline and close near the opening price, after conflicting expectations in the markets. After the Federal Reserve’s decision and the recent US economic data, gold reduced its losses and returned to fluctuation within the trading range.
