Gold prices recorded new highs in the Egyptian market during recent trading, while traders told Al-Arabiya.net that they are irrational and there is no justification for them other than the return of the activity of the black market for the currency.
In recent transactions, the price of a gram of 18 carat gold rose to regarding 1800 pounds, while the price of a gram of 21 carat gold, the most traded in the Egyptian market, jumped to the level of 2100 pounds. The price of 24 grams also rose to regarding 2400 pounds.
While traders and dealers in the market minimized the Egyptian market’s impact on international gold prices, they linked the recent increase in prices to the return of the activity of the black market for exchange, as dealers reported that the US dollar traded in the parallel market at a level exceeding 35 pounds in recent transactions.
In his interview with Al-Arabiya.net, Sameh Ayad, one of the shop owners in the goldsmiths market in Cairo, said that the rises recorded by gold at the global level cannot be translated into these great rises in the Egyptian market, and what is happening at the present time was repeated at the end of last year. When gold prices reached record levels.
He explained that the majority of traders link gold prices to the dollar exchange rate in the parallel market, and as long as exchange rates rise outside banks, gold prices are raised beyond the recorded increases in dollar exchange rates, but on the black market.
According to a statement, the General Division for Gold and Jewelry of the General Federation of Chambers of Commerce in Egypt said that the markets are witnessing unjustified increases that raised trading prices, so that the price of a gram of 21 exceeds the level of 2100 pounds.
She pointed out that there is no justification for this change in the markets, especially with the global price not changing, the global stock market stopping for its weekly holiday, and the stability of exchange rates in the local markets, explaining that the current prices exceed the fair price of gold.
Globally, gold witnessed a strong positive performance during last week’s trading, to return to the forefront of asset markets and safe havens, following the wave of banking crises that shook global markets, and changing bets on interest rate movements by the Federal Reserve Bank.
According to the data, spot gold prices increased by 6.5% during last week’s trading, to record the largest weekly rise in 3 years, reaching the highest level in 11 months at $1989.07 an ounce, and knocking on the doors of the psychological level targeted by the markets at $2000 an ounce.
Since the beginning of this year, the precious metal has risen by 8.8%, while gold recorded its last peak above $2,000 in March 2022 when it reached $2,070.29 an ounce, which matches the high record of approximately $2,076.0 an ounce, which was recorded in August 2020.
This record performance in gold prices came as a result of the risk aversion that swept the global financial markets, making gold the main target for all investors, according to “Gold Billion”. Before the closing of trading in the financial markets, the demand for gold increased sharply due to fears of negative developments that might occur in the banking sector during the weekend, as happened last week, which prompted investors to secure their financial portfolios by buying more gold before closing.
