Gold prices in Egypt are unstable due to the successive hikes and record levels, even during the global market holiday. Some believe that these price movements are unjustified and influenced by massive speculation.
The most common 21-karat gold opened today’s trading at EGP 3,220 per gram and spiked to EGP 3,260 per gram by the end of the day.
Gold Bullion’s technical analysis revealed that the local gold prices increased for no specific reason, despite the closure of the global market on Friday. Some described this as unjustified spikes and exploitation of the holiday period, especially with the rise of the dollar in the parallel market.
The analysis explained: “The local market is affected by several factors, such as the appreciation of the dollar in the parallel market. Also, the initiative to import gold without customs duties did not bring large quantities of gold recently, because it was not a holiday period. This did not help to stabilise the market. Therefore, there was an opportunity for speculation, especially with the fear of a possible floatation in the exchange rate. Moreover, the decision to stabilise the interest rate by the Central Bank of Egypt and the lack of new savings options for the cash liquidity from the 25% certificates increased the demand for gold and its prices.”
