Gold sales have continued to grow in Egypt for the second week despite high prices, according to Ragab Hamed, Associate Director at Sabayik al Kuwait for precious metals trading.
Prices for the precious metal have recently touched EGP 911,000 per kilo for 24-carat and EGP 6,360 for the gold bullion coin.
In a weekly report issued by the company on gold and minerals, Hamed explained that many Egyptians prefer to hold onto their gold rather than selling and taking the profits, despite the current high prices. He noted that this comes off the back of a general market certainty that gold prices may very soon break the EGP 1,000 per gram barrier, with this expected to occur before the end of the year.
He pointed out that gold prices in the Egyptian market were quieter at the end of the week, due to the stability of international prices which began on Friday.
The slight lull was attributed to the US Stock Exchange’s closure for Independence Day, and a slight boom to EGP 795 of 21-carat gold prices, and EGP 681 for 18-carat gold. An ongoing recovery is anticipated as the world starts to normalise in light of the novel coronavirus (COVID-19) pandemic.
Hamed noted that, as usual, gold achieved a new high last week, touching the $1,789 level, and exceeding the $1,800 level for futures at the beginning of last week.
This was supported by the high demand for the metal, as a result of investors looking towards safe havens in which to sink their investments, amid fears for the current economic climate.
He added that gold has remained solid from the beginning of the year, achieving gains of upwards of 18%, to edge closer to $1,800 with expectations it will reach $2,000.
He noted that the SPDR Gold trust raised its daily gold possessions, the last of which was on Thursday when the fund raised its holding by 1,119 tonnes or 0.8%.
A recent World Gold Council (WGC) report highlighted that central banks worldwide have raised their holdings of gold as the numbers recorded 39.8 tonnes in May. Turkey, Uzbekistan, and Russia are just a few of the central banks that have increased their purchases of gold. The latest figures reflect the same level as those recorded last April, and May’s data exceeds the average expected in the five months recorded this year.