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Gold prices in Egypt have risen wild, meeting all expectations, and have even surpbaded the global rise in gold prices in a significantly unprecedented and the first of its kind in six years .
The price of gold in Egypt has recorded the highest price in its history, the price of gold in grams ranging between 21 and 680 pounds today, against 669 pounds.
The price of 18 – carat gold grams has soared to 582 pounds, and that of carat grams to 24 to 777 pounds, and the price of the gold pound to 540 pounds.
World prices jumped 1% for the largest period in six years, in the absence of any sign of a decline in the trade war between China and the United States.
But what is the secret of this crazy climb? Perhaps this was an issue that was of great concern to many Egyptians and how long this increase would last.
The US "Bloomberg" agency has closely followed the reasons for the rise of gold in the world and has devoted some of it to Egypt.
The agency said that the price of gold had recorded significant gains since the beginning of the year, reaching a rate of nearly 17% since the beginning of 2019.
Bloomberg attributed the main reason for the rise of political tensions and their commercial implications for the whole world.
Refuge
Wayne Gordon, executive director of Commodities and Foreign Exchange at the UBS Group's wealth management unit, explained that the rise in the price of gold was mainly explained by the fact that the investors were considered the only "safe haven" in the trade war.
Investors see gold as a "safe haven" in the face of accelerating trade war, slowing global growth and lower interest rates, and monetary policy at banks central of the world.
The most striking example, according to Bloomberg, may be that the low interest of the United States has resulted in a reduction in dollar investments in favor of an increase in gold investment.
Last Wednesday, the US Federal Reserve took the decision to reduce interest rates by 0.25%, and central banks around the world made a similar decision.
Global gold prices generally rise when the US Federal Reserve lowers interest rates on the dollar, as investors believe gold profits outweigh the dollar.
The price of the dollar
Rafiq al-Abbasi, head of the goldsmiths' section at the Federation of Egyptian Industries, told Erm News that the increase reflected the sharp decline of the US dollar in Egypt.
Abbasi said: "When buying or selling gold on the stock market, the price of the dollar is first calculated against the pound sterling; any fall or rise in the price of the dollar therefore directly affects the price of gold in the domestic market. "
Abbasi ruled out that "the strong popular demand in the local market to buy any relationship with high prices".
Ihab Wbadef, a member of the Precious Metals Division's board of directors, said investors' apprehension about the US-China conflict accentuated the volatility of the gold price, which affected the price of gold. Egyptian market.
But Wasif mentioned another reason that led to this crazy rise in the price of gold: "Gold demand has risen sharply over the recent period, which has led to higher prices, investors seeking a refuge to escape the trade conflict and affected areas ". Crisis. "
When does it stop?
Bloomberg came back to talk about the timing of the expected rise in the price of gold.
"The current price of gold can maintain its strength in the next 6 to 12 months," said Hui Li, an economist at CNBC.
"The world is now in a precarious state, and gold is benefiting greatly from the situation."
"There are low interest rates, a weak dollar, trade and geopolitical tensions along the Gulf and between the United States, China and the Middle East, all of which will not make it easy to lower the price of gold. "
Ehab Wbadef, head of the Egyptian division of the Egyptian Chamber of Commerce, said on Al-Youm Al-Sabe's website that the reverse is expected for the coming period.
"Over the coming period, the demand for gold will increase, especially with the rising price of the pound sterling against the US dollar and the persistence of escalation and trade war in the region, as well as expectations of slowing economic growth.This is pouring into the crucible of gold that everyone resorts to.Least risky investment. "
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