The price of gold in the Egyptian market rose on Saturday by about five LE compared to Friday’s prices.
The price of 21-karat gold (the most popular grade in the local market) stood at LE765 on Saturday, compared to LE760 on Friday. Meanwhile, the price of 18k gold increased on Saturday to LE655 and 24k gold to LE875.
This comes in light of the rise in global gold prices of about US$10, with an ounce costing $1,735 in today’s tradings.
Member of the Gold Division at the Cairo Chamber of Commerce Amir Rizq said that the rise in gold prices is a result of the tension between the US and China over the ongoing global coronavirus crisis.
Speaking to Al-Masry Al-Youm, Rizq said that gold prices increased in Egypt due to increased demand for crude oil and a decrease in purchases of supplies.
He added that Egypt’s market movement has suffered a complete halt despite the Eid al-Fitr holiday season, due to the negative impact of the coronavirus leading to a current stagnation in buying and selling.
He added that curfew hours in the evening contributed to further stagnation of the gold market, as most sales usually begin in the evening after iftar — the fast-breaking meal that occurs at sunset during the holy month of Ramadan.
Rizq 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.
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 LE55 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