Global, local gold prices return to earth

Local gold prices took a fall this weekend, reflecting a decline in their global counterparts, with the price of one troy ounce dropping from LE6169 to LE6109 on the local market.

Gold prices rose sharply three weeks ago when a number of national governments began buying huge volumes of the precious metal to offset falling currency values.

"But the Dubai debt crisis brought prices back down again after traders in the Gulf began selling off some of their gold holdings for cash," said Rafiq Abbasi, head gold trader at the Egyptian Chamber of Commerce. Abbasi went on to point out that global gold prices were linked to a basket of currencies and not just to the US dollar.

On the local market Saturday, the gold guinea fell from LE1385 to LE1272; 24-carat gold fell from LE197 per gram to LE195.94; 21-carat dropped from LE173 per gram to LE171; 18-carat from LE148 per gram to LE147; and 14-carat from LE115.3 per gram to LE114.7.

Translated from the Arabic edition.

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