He lost 180 pounds in hours… the collapse of gold prices in evening trading

He lost 180 pounds in hours… the collapse of gold prices in evening trading
He lost 180 pounds in hours… the collapse of gold prices in evening trading

Books: Diaa Al-Sakka

Gold prices continued their decline today, Saturday, in evening trading, and the price of a gram decreased by about 60 pounds compared to its level in the middle of trading, to record 21 carat, the best-selling in the market, 2300 pounds per gram.

The price of gold fell by about 120 pounds per gram until the middle of today’s trading, compared to its level yesterday evening, bringing its total loss to about 180 pounds per gram during today’s trading so far.

And gold had declined from 2550 to levels of 2300 pounds per gram, amid expectations of a further decline with the regular entry of gold with returnees from abroad after the abolition of all customs duties, with the exception of value-added tax.

The Egyptian government’s decision to exempt gold imports from customs tax and other fees for a period of 6 months, other than the 14% value-added tax, came in light of the keenness to achieve a balance between supply and demand in the gold market, after the exceptional movements in gold prices in the recent period.

And the Monetary Policy Committee of the Central Bank of Egypt decided, in its last meeting, to raise the rates of the deposit and lending return for one night and the price of the main operation of the Central Bank by 200 basis points, to reach 18.25%, 19.25% and 18.75%, respectively. The credit and discount rate was also raised by 200 basis points (2%) to reach 18.75%.

This comes days after the US Federal Reserve raised interest rates by 0.25%, in line with expectations, stressing that inflation remains high.

The US decision to raise interest rates for the ninth time in a row comes to the range of 4.75% to 5%.

The reason for the increase in the annual core inflation rate is the rise in the prices of goods and services – to 40.3% in February 2023, compared to 31.2% in January.

The gold market has been suffering from severe recession and lack of buying demand 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 declining currencies.

The average gold price, on Saturday, in the markets, was as follows:

18 karat records 1971 pounds.

21 karat records 2300 pounds.

24 karat records 2629 pounds.

The gold pound is 18,400 pounds.

NBPrices are without adding workmanship, and may vary from store to store.

Gold prices witnessed significant jumps in the local market in the past months, affected by the global price of the metal, which rose due to the declaration of war between Russia and Ukraine.