Egypt's gold market experienced a modest increase in prices during the week ending on Saturday, with 21-carat gold rising by 20 pounds to 6150 pounds. According to the "Gold Observatory," the local gold market saw a 0.3% increase in prices, while global gold prices rose 1.3% to $4195 per ounce. The increase in global gold prices was attributed to a decline in the US dollar and bond yields.
The price of 21-carat gold opened the week at 6130 pounds, dropped to 6080 pounds, then rose to 6160 pounds before closing at 6150 pounds. The price of 24-carat gold reached 7029 pounds, while 18-carat gold was priced at 5271 pounds. The gold pound was traded at 49200 pounds. These prices reflect a relatively stable market, with minor fluctuations.
Globally, gold prices rose by $54, from $4141 to $4195 per ounce, after dropping to $4066 per ounce mid-week. The decline was attributed to a strong US dollar and rising bond yields. However, the prices rebounded due to a decline in bond yields and a weaker dollar. The fluctuations in global gold prices were also influenced by the decline in oil prices following news of positive American-Iranian talks.
According to Dr. Walid Farouk, director of the Gold Observatory for Economic Studies, the local gold market is not moving in tandem with the global market. He noted that the price of the dollar against the pound rose by 0.19% during the week, from 52.40 pounds to 52.50 pounds. This increase in the dollar price had an impact on the local gold market.
The Gold Observatory's calculations showed that the indicative value of 21-carat gold at the beginning of the week was around 6104 pounds, compared to a local price of 6130 pounds, a premium of around 26 pounds. By the end of the week, the indicative value had risen to 6196 pounds, while the local price was 6150 pounds, resulting in a discount of around 46 pounds per gram.
Despite the weekly increase, global gold prices are still down by 25.4% from their peak on January 29, when they reached $5626 per ounce. In contrast, the local gold market has seen a 5.5% increase in prices since the beginning of the year, with 21-carat gold rising by 320 pounds to 6150 pounds. However, local gold prices are still 19.1% lower than their peak on March 3, when they reached 7600 pounds.
Since the beginning of October, global gold prices have risen by $40, or 1%, while local gold prices have increased by 40 pounds, or 0.7%. These trends highlight the differences in performance between the local and global gold markets, with the local market influenced by exchange rate fluctuations and pricing differences.
Key points
- Egypt's gold market sees modest gains despite global uptrend
- Local gold prices rise 20 pounds to 6150 pounds per gram
- Global gold prices increase 1.3% to $4195 per ounce
