Gold prices in the local market recorded strong gains in January, jumping by around EGP 995, despite steep declines observed in the final days of the month, according to a report issued by online gold and jewellery trading platform iSagha.
Saied Embaby, Chief Executive of iSagha, stated that the price of 21-carat gold opened January trading at EGP 5,830 per gram and reached an all-time high of EGP 7,550, before closing the month at EGP 6,825. On the other hand, 24-carat gold settled at around EGP 7,800 per gram by the end of trading, 18-carat gold at EGP 5,850, and the gold pound at approximately EGP 54,600.
Globally, gold prices surged by about $577, or 13.4%, during January. The ounce began the month at $4,318, touched a peak of $5,605, and closed at $4,895.
The local market recorded its largest single-day loss in history last Friday, with prices falling by nearly EGP 600 per gram, in tandem with a sharp global decline that saw gold drop by more than $510 per ounce.
Commenting on the pricing gaps, Embaby explained that local prices remain higher than their global equivalents by up to EGP 405. He attributed this to the intensity and speed of global price fluctuations, in addition to strong demand, which have made it difficult for some traders to keep pace with real-time movements. He stressed that the platform would transparently clarify any unjustified pricing gaps to the public.
Embaby also noted that the gold market is not suffering from a shortage of raw material; however, demand is exceeding the production capacity of factories, placing pressure on the market. In contrast, the silver market is facing two simultaneous challenges. They are a shortage of raw materials and factories’ inability to meet rising demand, making itmore vulnerable to volatility.
He stressed that sharp declines in gold prices do not signal the end of the upward trend. He forecasted a return to gains after a period of relative calm, and advised those who purchased gold at high levels to hold on to it to recover losses, amid continued positive expectations through the end of the year.