Egypt gold prices continued their rise during Monday’s trading, supported by a rise in global markets and an escalation in US-China tensions.
Gold prices rose to record levels on Monday as the rift between the US and China intensified, and a weak US dollar pushed investors to seek refuge in the safe haven provided by gold. This comes in light of the risks to the global economy, particularly as it has taken a hit on the back of the novel coronavirus (COVID-19) pandemic.
Ehab Wasef, deputy head of the gold division of the Federation of Egyptian Chambers of Commerce (FEDCOC), said that gold prices rose by about EGP 19, with 24-carat gold selling for about EGP 988.55 per gram. He added that 21-carat gold is currently selling for a new record of about EGP 865 per gram, and 18-carat gold is selling for about EGP 741.40 per gram.
Wasef explained that the price of a gold pound rose by EGP 152 to record EGP 6,920, while the global price of an ounce rose 1.6% to $1,931.50 after setting a record of $1943.93.
Rafik El-Abbasi, head of the gold division at the Federation of Egyptian Industries’ (FEI) Chamber of Metallurgical Industries, said that the current high gold prices are due to turmoil on the global economy. He also pointed to governments and financial institutions resorting to substituting stocks with gold.
Talking to the Middle East News Agency (MENA), El-Abbasi said that the high price of gold is due to increased demand and lower supply. If the global economy stabilises or improves, the movement of selling by governments and financial institutions will lead to a stabilisation in gold prices or lead to their decline.
Regarding the price expectations for the coming period, he indicated that it is difficult for individuals to predict the future of the global economy. He noted that individuals are currently following government guidelines, which depend on the analysis and predictions of economists.