Gold market disorientated after EGP depreciation, 25% bank certificates

Gold market disorientated after EGP depreciation, 25% bank certificates

Egypt’s gold market witnessed a state of confusion following state-run banks’ offering saving certificates of 25%, namely Banque Misr and National Bank of Egypt (NBE), and the depreciation of Egyptian pound against dollar, besides the increase of gold prices on global stock exchanges. This prompted some gold traders to stop buying and selling until the market stabilises.

Saeed Embaby, CEO of iSagha.com, a platform for trading gold and jewellery, said that gold prices spiked in local markets during Wednesday trading, with the ounce reaching $1860, amid investors’ anticipation of the fate of interest rates during 2023.

Embaby noted that local market is witnessing confusion and a state of uncertainty, with some merchants suspending buying and selling operations, until the market stabilises, while gold prices in the local markets increased by EGP 15 during Wednesday trading, compared to the closing of trading on Tuesday, so that a gram of 21-carat gold recorded EGP 1,675.

He added that a gram of 24-carat gold recorded EGP 1,914, a gram of 18-carat registered EGP 1,436, a gram of 11-carat gold recorded EGP 1,117, and a gold pound reached EGP 13,400.

Embaby explained that every increase in dollar value by about one pound increases about EGP 50 in price