Sharjah – Omaima Yasser – Gold prices rose, Saturday, July 30, with a value of 16 pounds, to record 21 karat best selling in Egypt, 1016 pounds per gram.
This comes after raising the interest rate in the United States of America to 2.5% at the Federal Reserve’s meeting last Wednesday night, which decided to raise interest rates by 75 basis points, and the Fed Chairman’s statements that the bank had slowed the rate of interest rate hike caused a high demand for gold.
The Monetary Policy Committee of the Central Bank of Egypt decided, in its last meeting, to fix the interest rates on deposits and lending overnight and the rate of the main operation of the Central Bank at 11.25%, 12.25% and 11.75%, respectively.
The Central Bank of Egypt decided to fix the credit and discount rate at 11.75%.
The Central Bank had raised interest rates by 2% at the Monetary Policy Committee’s meeting last May for the second time, after raising it by 1% on March 21 during an exceptional meeting, coinciding with the offering of a high-return savings certificate of 18% by the National Bank of Egypt and Egypt, which was suspended. Recently, after achieving the targeted proceeds of selling certificates worth 750 billion pounds.
On Friday, May 6, 2022, gold prices recorded the highest level for the yellow metal in history, as 21 karat reached 1230 pounds per gram.
The gold market is suffering from severe stagnation and lack of buying interest for a long time.
Local gold prices are witnessing their largest price fluctuation since 2016.
Gold is considered a safe investment in times of political and economic uncertainty, and the yellow metal tends to benefit from economic stimulus because it is largely considered a hedge against inflation and currency depreciation.
The average price of gold, Saturday, July 30, in the markets, was as follows:
Carat 18 records 871 pounds.
21 carat records 1016 pounds.
24 carat records 1161 pounds.
The gold pound is 8128 pounds.
Note: Prices do not include workmanship, and may vary from store to store.
Gold prices have witnessed major jumps in the local market in the past weeks, affected by the price of the metal globally, which rose due to the declaration of war between Russia and Ukraine.
In a dangerous escalation, Russian President Vladimir Putin announced the start of a military operation in the Donbass region in eastern Ukraine, whose independence Russia recently recognized and concluded with its leaders a friendship agreement, coinciding with the start of the military ground movement in Ukrainian cities during the past days.
Putin said that his country does not intend to occupy Ukraine, but rather to protect the Donbass region, which includes the republics of Donetsk and Luhansk, warning against any external interference in Ukraine and at the same time calling on the Ukrainian army to lay down its arms.
The situation in the Donbass has escalated in recent days, and the Donetsk and Luhansk People’s Republics reported a lot of shelling by the Ukrainian security forces, and the leaders of the two republics announced a temporary evacuation of citizens (women, elderly and children) to Russian Rostov, and the leaderships of the two republics went to the request of the Russian President on February 19, at the request of recognition of their independence.