Books – Islam Saeed
Saturday, May 13, 2023 04:00 PM
Several changes took place in the gold market in Egypt, and prices fell by approximately 430 pounds, and within only 27 hours, and after the issuance of the Cabinet’s decision to allow the entry of gold with Egyptians returning from abroad without customs, prices witnessed declines of more than 170 pounds, and this decline was preceded by other declines, bringing the total decline in gold More than 430 pounds in two weeks.
Gold prices fell during the week ending after a long series of almost daily rises that pushed gold prices to historical levels, which some saw as exaggerated prices, due to the sharp increase in domestic demand, but the past week witnessed a lull in the gold markets accompanied by a gradual decline in price levels. According to Gold Bellion
The price of 21 karat gold, the most common today, recorded 2370 pounds per gram, after it recorded a decline during the past week by about 8%, while the price of the gold pound recorded 18960 pounds, and gold decreased by approximately 430 pounds since recording its highest level in its history at 2800 pounds per gram. The decline is more than two weeks, after the map of demand for gold changed during the last period, after the sharp decline in demand that drove prices crazy during the last period..
The decline in gold prices came in light of a number of initiatives to work to calm the markets, the most important of which was allowing those coming from abroad to enter gold imports without customs or fees, except for the 14% value-added tax on workmanship, in order to work to increase the supply of gold to meet the record high demand during this period of time.
The Gold Division also took the initiative to reduce workmanship prices on gold artifacts to work to increase demand for them and reduce demand for bullion and gold coins, which caused historically high gold prices..
These initiatives coincided with a gradual decline in the demand for gold during the recent period, after gold prices absorbed large volumes of cash liquidity resulting from the maturity of the 18% certificates, which was the main reason behind the sharp increase in demand for gold after the reluctance of a large sector to invest in the new certificates. With a fixed return of 19% and a decreasing 22% due to fear of decreasing the exchange rate of the pound against the dollar again.
Calm domestic demand and initiatives to increase supply in the market helped prices decline, bringing the local gold market closer to returning to pricing according to the global gold price, after being separated from it for a long period of time and local pricing reliance on supply and demand only..
In general, gold remains in an upward trend, and the recent gradual decline in price levels remains a negative correction, since the economic factors that drove the increase in demand for gold were stable and unchanged, according to the technical analysis of the gold market from Gold Billion.
The Gold and Precious Metals Manufacturing Division of the Chamber of Metallurgical Industries of the Federation of Industries has completed a proposal that will be submitted to the competent authorities to impose fees on bullion from 1 gram to 100 grams, with the aim of raising the cost of bullion in order to clear the way for the goldsmiths industry..
Mamdouh Abdullah, a member of the board of directors of the division, said that the gold jewelry industry is suffering greatly in the current period due to the reluctance to buy artifacts and the tendency to buy bullion, and this negatively affects the local industry, because the jewelry factories are labor-intensive, and the idea of the continued collapse of sales negatively affects the capabilities of the factories. in paying their obligations.
Mamdouh Abdullah stressed, in exclusive statements, the need to intervene to save the artifact industry, as there is a significant decline in the volume of gold artifact production by about 70 to 80% during the current period due to the drop in demand in favor of bullion and pounds, which requires the imposition of fees on bullion of all weights and even 100 gr.
He stressed that imposing fees on gold bullion and pounds in order to stimulate the movement of demand for gold artifacts and operate factories, especially since the factories’ ability to pay obligations is declining with a significant drop in sales.
A member of the Board of Directors of the Minerals Division explained that the decline in production leads to a decline in demand, which will lead to factories bearing the burden of labor expenses in addition to fixed obligations, indicating that preserving trained workers has become a major challenge for the handicraft industry.