The local gold markets experienced a state of turmoil, fluctuations, and a halt of trade during the past week, due to the emergence of a parallel market that traded at different prices than the official ones.
Saied Embaby, the CEO of iSagha, an online platform for trading gold and jewellery, said that the 21-karat gold price fell by 13%, about EGP 520 ($16.8), to EGP 3,560 at the end of the trading week.
Meanwhile, gold prices rose on the global stock market by 1%, by $21, during the trading week that ended last Friday evening. The ounce opened trading at $2,019, reached $2,060, and closed at $2,040, due to the market confidence about the US Federal Reserve reducing the interest rates starting from next March.
Embaby added that a gram of 24-karat gold recorded EGP 4,069, a gram of 18-karat gold reached EGP 3,052, a gram of 14-karat gold registered EGP 2,374, and a gold pound recorded EGP 28,480.
He explained that the leaks about the initial agreement between Egypt and the IMF, and the UAE investments in the Ras El Hekma region, led to a decline in the dollar exchange rate in the local market, and consequently a decline in gold prices.
He expected that gold prices would witness a further decline in the coming period, but the surge in prices on the global stock market and the shortage of supply in the local market may limit the extent of the decline.
He disclosed that the instability in the gold markets led to the practice of trading at parallel prices in some gold stores, and selling at prices higher than the announced ones.
He also pointed out that raw gold traders stopped buying and selling, creating a state of random pricing, which would harm the national economy and the interests of the citizens, and expose those who want to hedge gold to buy at prices much higher than the fair ones and sell at prices lower than the due ones.
