Cairo – Mubasher: Saeed Imbaby, executive director of the “iSagha” platform for trading gold and jewelry via the Internet, said that the decision of the Monetary Policy Committee of the Central Bank to fix interest rates during its meeting held today, Thursday, will lead, accordingly, to the stability of price movement in the gold market during the coming period.
And the Monetary Policy Committee decided, in its meeting today, to fix the rates of the one-night deposit and lending return and the rate of the main operation of the Central Bank at 18.25%, 19.25% and 18.75%, respectively, and the credit and discount rate were fixed at 18.75%.
He explained, Imbaby, that moving or fixing interest rates affects the exchange rate of the dollar in the official or parallel market, which is one of the factors influencing the determination of gold prices, and then fixing interest will lead to the stability of the dollar exchange rate as well as gold prices.
He added that the stabilization decision came based on the decline in inflation rates during the month of April, to record 30.6%, which prompted the Central Bank to fix the interest rate during the current meeting, and to keep the situation as it is and maintain its stability.
He pointed out that the repetition of raising interest rates will lead to a state of indiscipline in the markets, high prices and erosion of purchasing power, and thus the tendency to freeze funds in assets and not use them in development projects, and pushes merchants and manufacturers to raise prices in order to hedge against the erosion of the local currency, what pressure on the final consumer.
Imbaby indicated that gold prices witnessed a state of price fluctuations in a limited range before the end of today’s trading, Thursday, as a gram of gold began today’s trading at the level of 2210 pounds, a rise to the level of 2235 pounds, and a decline to the level of 2220 pounds, and the market is awaiting the conclusion of trading this evening, while The ounce witnessed a sharp decline of $29 during today’s trading, to record $1958.
He added that a gram of 24 karat gold recorded 2538 pounds, a gram of 18 karat gold recorded about 1903 pounds, a gram of 14 karat gold recorded about 1480 pounds, while a pound of gold recorded about 17760 pounds.
He pointed out that the decline of the ounce on the global stock exchange is attributed to the state of optimism about the improvement of the US negotiations on raising the debt ceiling, in addition to the issuance of some strong US economic data, which reinforced the possibility of the US Federal Reserve raising interest rates, and increased pressure on gold.
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