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Eid Al-Fitr’s weddings and engagements bolster gold market

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Local gold market witnessed a surge in sales and prices in Eid el-Fitr as Egyptians seize the vacation to hold their engagements and wedding ceremonies

Egyptians flocked to the gold market in Eid el-Fitr, driving prices up despite political instability. AFP Photo

Egyptians flocked to the gold market in Eid el-Fitr, driving prices up despite political instability.
AFP Photo

Gold vendors saw a noticeable turnout in gold purchases during last week, due an increase in the number of weddings and engagements during Eid Al-Fitr.

Gold prices surged in the local market’s transactions on Monday, recording EGP 299.44 for 24 K, compared to EGP 295.73 on Sunday.

While the broadly traded 21 K recorded EGP 262.04, compared to EGP 258.83, while the 18k inched EGP 224.63, compared to EGP 221.92.

“Our purchases increased but not too much as we experienced during Eid Al-Fitr previously,” said the head of the gold division of the chamber of commerce, Wasfy Amin.

Amin emphasised that after January 25 Revolution, the gold market in Egypt suffered a sharp decline and selling plunged 90%, but during Eid Al-Fitr purchases increased slightly by 10%.

Amin added the trade was stopped since Friday 28 June, and products were removed from window displays for security reasons.

The 30 June revolution has not helped achieve our hopes, especially since there are lots of protests in the streets, he said.

As for the future of the gold market Amin believes gold trade depends mainly on stability and security on the streets and on the prices on the international gold market, while the price of gold in the Egyptian market has no impact on the global one.

Meanwhile Abdel Mawla, a branch manager of one of the biggest gold traders in Egypt, El-Mawardy, said Eid Al-Fitr is the season for gold vendors due to the increase in weddings and engagements.

Abdel Mawla pointed out that the gold trade during Eid Al-Fitr increased from 10 to 15%, which is not a real “rise” in purchases.

“After the January 25 Revolution our trade strongly dipped, and now people are afraid of the uncertainty of political tension, and they are worried  about spending money to buy gold and jewellery because it’s ‘for fun’ products,” he said.

Abdel Mawla said after the January 25 Revolution, gold vendors closed the display windows of their shops for security reasons.

Branches are concerned with insecurity and the protests occurring across the nation, especially the branch in Nasr City that is affected by the Rabaa Al-Adaweya sit-in, he said.

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Hend El-Behary

Hend El-Behary

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