Egypt Independent

Egypt’s Gold prices up by LE3 per gram, 21-karat at LE780

Gold prices in the Egyptian market rose by about three LE on Saturday compared to Friday’s prices.

The price of 21-karat gold, the most popular grade in the local market, stood at LE780 on Saturday compared to LE777 on Friday.

Meanwhile Saturday saw the price of 18k gold at LE666, while 24k gold rose to LE889.

Friday’s prices were LE777 for 21-karat gold, LE666 for 18k gold, and LE888 for 24k gold.

Experts attribute this increase to the rise of an ounce globally by about US$54 to $1,737 on Saturday, compared to $1,683 on Monday.

The increase is a continuation of an increase in the gram of gold in the previous period; a gram of 21-karat gold was LE 765 last Saturday, an increase of LE15.

A member of the Gold Division at the Cairo Chamber of Commerce Amir Rizq said that gold prices have risen globally owing to increasing fears of a second coronavirus wave, which has seen an increased demand for gold as a safe investment, alongside the declining value of US bonds for gold.

He explained that gold prices in Egypt are affected by global gold prices and the US dollar exchange rate, and that they cannot be interfered with by traders, who calculate the price by multiplying the international price by the price of the US dollar.

Egypt’s market movement suffered a complete halt during the past period, Rizq said, attributed to the coronavirus’s negative economic impact bringing on this current stagnation in buying and selling.

He added that the evening curfew hours contributed to further stagnation in the gold market, with the lockdown beginning at eight pm, coupled with the loss of marriage ceremonies thanks to the outbreak.

Gold prices have been on the rise since February — a result of global fears over the economic fallout of the coronavirus pandemic, which has prompted investors to take refuge in safe-havens like gold.

The price of 21-karat gold in the local market has increased by more than LE80 since Egypt announced its first coronavirus case in February.

Egypt has imposed a nationwide curfew since March, suspended schools and universities, shutdown airports and malls, closed houses of worship, and limited the working hours of shops and restaurants as part of its precautionary measures to curb the spread of coronavirus.

Several businessmen and industry investors have warned against the consequences of these measures on the country’s economy and called for opening businesses and restoring the situation to before the curfew.

Edited translation from Al-Masry Al-Youm