Gold prices stabilized in the Egyptian market during Tuesday’s trading, despite the pressures on global prices, amid a balance between the rise in the price of the dollar against the pound and the decline in the price of the ounce globally.
A gram of 21 karat gold, the most traded in Egypt, maintained a level of 6,255 pounds, while a gram of 24 karat recorded about 7,148 pounds, and the price of a gram of 18 karat reached about 5,361 pounds, while a pound of gold recorded about 50.04 thousand pounds.
Globally, ounce prices moved near the level of $4,396.
Saeed Embabi, CEO of the iSagha platform for trading gold and jewelry, said that the stability of gold prices locally over the past two days reflects the ability of the Egyptian market to absorb external pressures.
He explained that the stability of prices does not mean the separation of the local market from the movement of gold globally, but rather comes as a result of the balance between the rise of the dollar against the pound on the one hand, and the decline in global ounce prices on the other hand.
A remarkable decline in the price gap
The iSagha report showed a noticeable improvement in the gap between the local price of gold and the fair price calculated according to the international price of an ounce and the dollar exchange rate.
The gap decreased from 16.87 pounds yesterday to only 4.98 pounds today, which Embabi considered a positive indicator of improved pricing efficiency in the Egyptian market.
He added that the continuation of geopolitical tensions enhances the attractiveness of gold to local investors as it is one of the most important safe havens.
The dollar is pressuring the market
The dollar recorded a new high against the pound during Tuesday’s trading, exceeding the level of 50 pounds, coinciding with increasing pressure on emerging markets due to geopolitical developments in the region.
According to the report, the continued pressure on the pound against the dollar, in addition to regional tensions, may limit the impact of any declines in global gold prices on the Egyptian market.
