According to Nadi Naguib, a member of the Egyptian Chamber of Commerce's Gold Committee, gold is a strategic and global commodity closely tied to international economic and political developments. As such, its pricing in the Egyptian market is primarily determined by a specific equation that multiplies the global ounce price by the official dollar exchange rate in banks. The supply and demand mechanism plays a secondary and temporary role in determining price movements.
Naguib explained that the recent decline in gold prices is mainly due to the drop in global ounce prices, combined with a significant amount of gold available in the local market, limited cash liquidity, and weak purchasing power. These factors have put downward pressure on prices. He noted that the Egyptian market is highly responsive to global trading trends, with increases in global ounce prices directly impacting local gold prices and vice versa.
The current market situation was illustrated with numbers by Naguib, who stated that the global ounce price has dropped to around $4,118. This decrease has been reflected in the local market, with 24-karat gold priced at approximately 6,949 pounds, 21-karat gold at 6,080 pounds, and 18-karat gold at 5,211 pounds. The price of a gold pound, weighing 8 grams, has reached 48,640 pounds.
Naguib advised citizens and investors that the current time is an ideal opportunity to buy gold for those looking to save or recoup losses from previous sales at higher prices. He expects gold prices to stabilize at current levels before gradually increasing in the coming period, providing good returns and profits for investors in the medium and long term.
The recent decline in gold prices has been influenced by various factors, including the rise in oil prices and concerns about interest rates. However, Naguib emphasized that the gold market is subject to fluctuations and that prices can change rapidly in response to global events.
Despite the current dip in gold prices, experts like Naguib believe that the metal will continue to be a valuable investment option. As a result, individuals with available cash liquidity may consider buying gold as a long-term investment strategy.
In conclusion, while gold prices in Egypt have recently dropped, experts predict a gradual increase in the future. This makes the current time an attractive opportunity for those looking to invest in gold, with expected returns and profits in the medium and long term.
Key points
- The recent decline in gold prices is attributed to the drop in global ounce prices and limited cash liquidity in the Egyptian market.
- Experts expect gold prices to stabilize and then gradually increase in the coming period.
- The current time is considered an ideal opportunity to buy gold for investment purposes.
