Egypt's gold market experienced a surge in prices on Tuesday, with the gram of gold rising by around 20 pounds in mid-day trading. The price of 21-carat gold, a popular choice for jewelry, reached 6155 pounds per gram, up from 6135 pounds earlier. This increase is attributed to the rising price of gold on the global market, as well as fluctuations in the exchange rate of the US dollar.
The global gold market also saw a rise in prices, with the ounce of gold trading at 4153 dollars on the global exchange. The price fluctuated between 4103 and 4158 dollars throughout the day, as investors closely monitored geopolitical developments and economic data. The market is also awaiting the release of the minutes of the US Federal Reserve's September meeting, which is expected to provide insight into future monetary policy decisions.
In Egypt, the price of gold varies depending on the type of gold and the manufacturer. The price of 24-carat gold, often used for making gold bars, reached 7034 pounds per gram. Meanwhile, 18-carat gold, which is commonly used for making jewelry, traded at 5276 pounds per gram. The price of 14-carat gold, another popular choice, stood at 4103 pounds per gram.
The price of gold is also influenced by the cost of manufacturing, which can range between 3% and 7% of the gram price, depending on the complexity of the design and the manufacturer. The cost of manufacturing can vary significantly depending on the type of gold and the company producing it. For example, 18-carat gold tends to have a higher manufacturing cost compared to 24-carat gold.
The Egyptian market is also seeing a steady supply of subsidized bread, with the Ministry of Supply and Internal Trade announcing that over 30,000 bakeries will continue to dispense subsidized bread until the end of the month. This move aims to support low-income households and maintain food security in the country.
The rise in gold prices is also having an impact on the jewelry market, with many consumers opting for gold pieces with lower manufacturing costs. The price of the gold pound, which is equivalent to 8 grams of 21-carat gold, reached 49240 pounds. This has led to increased demand for gold as a safe-haven asset and a store of value.
Looking ahead, market analysts expect gold prices to continue fluctuating in response to global market trends and economic data. The release of the US Federal Reserve's minutes is expected to provide further insight into future monetary policy decisions, which could have an impact on gold prices.
Key points
- Egypt's gold prices rose by around 20 pounds per gram in mid-day trading on Tuesday.
- The price of 21-carat gold reached 6155 pounds per gram, driven by global market trends and currency fluctuations.
- The global gold market saw a rise in prices, with the ounce of gold trading at 4153 dollars.
