After declining by 600 pounds.. Does Egyptian gold touch the international price? By Alborsanews

Milad: The initiative to reduce workmanship on handicrafts will start this month

El-Laqani: Expectations of further decline and balance with international prices

World Gold Council: Egyptian purchases amounted to 16.2 tons during the first quarter

Gold prices lost 600 pounds in two weeks, with expectations of a further decline during the coming period to touch its global prices, after expatriates from abroad were allowed to enter quantities of gold without customs for a period of 6 months.

The past months have witnessed an increasing demand for “ingots”, and a reluctance to buy artifacts to avoid the high workmanship in the latter, which led to a shortage of them in the market, and pushed gold prices to reach 2800 pounds for the most traded 21 carat.

Hani Milad, head of the Gold and Jewelry Division at the General Federation of Chambers of Commerce, said that the initiative to reduce workmanship on gold artifacts is currently under study, and will come to light this month as part of efforts to balance demand between ingots and artifacts.

Milad added to Daily News Egypt that gold prices witnessed a significant decline by about 600 pounds during the past two weeks, after expatriates from abroad were allowed to enter quantities of gold without customs.

Milad expected gold prices to continue to decline to equal the international price soon, explaining that 21 karat currently recorded about 2225 pounds, 24 karat recorded about 2543 pounds, and 18 karat recorded about 1907 pounds, while the gold pound recorded about 17.8 thousand pounds, and the price of an ounce recorded 1986 dollars.

For his part, Amr El-Laqani, deputy head of the gold division at the Cairo Chamber of Commerce, said that the decline in gold prices during the past days came as a result of the decline in demand, after the reluctance of many consumers to buy.

He added to Daily News Egypt that the launch of the initiative to allow expatriates abroad to bring in “gold” without customs for a period of 6 months or fees, except for the 14% value-added tax on workmanship, will lead to an increase in supply in the coming period, and a balance between the local market prices and the international price.

He pointed out that the yellow metal has witnessed an increased demand during the past months, which prompted its prices to record levels, the highest in the history of the country, recording 2800 pounds per gram 21.

The data of the World Gold Council revealed that the total spending of Egyptians on buying gold and jewelry increased during the first quarter of this year to about 30.5 billion pounds, with a total amount of 16.2 tons, compared to 12.2 tons during the same period last year, with a growth rate of about 33%.

Egypt ranked seventh in the list of countries with the highest demand for buying gold and bullion during the first quarter of this year, with a share of about 2% of the global total.

Saeed Imbaby, executive director of the “iSagha” platform for trading gold and jewelry via the Internet, said that the price movement is still witnessing manipulation in the absence of clear determinants, indicating that what is happening represents a push for the consumer to sell what they possess due to the decline in prices, so that the manipulators buy at low values ​​of gold. Consumers, and after a while begins another gradual phase of raising prices to other unjustified levels.

He added that the entry of gold with returnees from abroad without customs will not solve the crisis, and it will be exploited, to make profits, by collecting and exporting abroad again.

I wrote – Waad Muhammad: