Egypt .. Gold Road – Arab RT

An Egyptian economist has predicted that the price of gold (21 carats) would rise in the Egyptian market, under the effect of a possible global bond jump above $ 1,700.

Walid Farouk, an economist specializing in the prices of gold and metals, told RT that the intensification of the "trade war and monetary war" between China and the United States had resulted in 18% gold gains since the beginning of the year.

He pointed out that gold prices are linked to political events and economic crises, where investors use them as a safe haven in times of crisis.

Farouk stressed the "inverse relationship" between gold and the dollar, thus strengthening the gains of the US Federal Reserve's decision to reduce interest rates by 0.25% for the first time since the global crisis in 2009.

The announcement by US President Donald Trump in early August, to impose additional tariffs of 10% on new Chinese imports, amounting to $ 300 billion. The dollar fell to its lowest level in two years, the price of gold jumped 2.2% and its ounce settled at 2:45 pm. dollars

The expert pointed out that the intensification of the trade war between China and the United States, after China has reduced its currency, the "yuan", to its lowest level, raised gold at the highest level in six years, namely in May 2013, and reached an ounce of $ 1,458.

Gold has strengthened its gains and reached the level of 1510 dollars, and the futures contracts on the international stock market have reached the level of 1524 dollars, and the percentage of gold has increased by 18% since the beginning of the year until August 2019, when he recorded early January 2081 dollars.

According to badytical reports, the current situation is pushing gold towards 2011 levels, when gold will have crossed the level of US $ 1,900 and gold will likely approach the level of 1,700. dollars.

The performance of gold prices in global markets is reflected in local markets, where yellow metal prices were determined locally by the price of gold on the global stock market and the exchange rate of the dollar on the local market.

Gold prices have reached the highest point in the history of Egypt, where the price of 21 carat gold grams, worth 700 pounds.

The rise in the local dollar exchange rate to 16.65 pounds contributed to the arrival of gold at a historical level, although the ounce recorded 1500 dollars, the price the highest having reached 1919 dollars an ounce in August 2011, but the average price of gold in Egypt was then 270 pound and the exchange rate of the dollar at the time of 5.90 pounds current levels are historical levels.

Farouk said that "rising gold prices on the international stock market at a level of $ 1,700 will push gold into the local market to exceed the 800-pound level for the 21-gauge."

"The increasing pace of trade and the monetary war between China and the United States and the reduction of interest rates by the US Federal Reserve will push another economic force to take similar European Union, Japan and India, which will boost global demand for gold, "said Farouk.

He said that "low interest rates will prompt investors to turn to gold as a safe haven and will increase the likelihood of a high demand, which is one of the factors influencing prices, encouraging producing countries to increase the volume of their production ".

"The increase in the price of gold over the coming period depends on the ability of gold-producing countries to increase the volume of supply, given the high demand in terms of maintaining market discipline between supply and demand, otherwise the levels of $ 1,700 will be very soon. "

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Source: RT