Saeed Imbaby, an expert in gold affairs and executive director of one of the platforms for trading gold and jewelry via the Internet, confirmed 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, Thursday, to fix the deposit and lending returns rates for one night, and the central bank’s main operation rate at 18.25%, 19.25%, and 18.75%, respectively, and the credit and discount rates were fixed at 18.75%.
The effect of interest on the price of gold
“Embaby” explained, in his statements a short while ago, that moving or fixing interest rates affects the exchange rate of the dollar in the market and gold prices, as the dollar prices will remain stable, and added that the fixing 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, which pressures on the final consumer.
Price fluctuations in a limited range
He pointed out 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.
