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Ahram Online
Gold prices in the Egyptian market fell on Monday, amid growing uncertainty cast by an expected rise in the US dollar price and the Russian war in Ukraine repercussions.
At the end of Monday’s trading, the price of 21 karat gold declined to £E1,180/ gram, a fall of £E20 compared to prices on Sunday. The 18-karat gold decreased to £E1,011/gram down from £E1,030 while the gram of 24 karat gold fell from £E1,370 to £E1,348.
The Egyptian gold market saw high demand over the past few days, after the US Federal Reserve hiked its benchmark interest rates by 0.5% which took place during the Eid Al-Fitr holiday. The Fed raised its benchmark interest rates by 0.75%, after the breakout of the Ukraine war in March.
The decision attempts to contain the severe prospect of a global inflationary wave. It is targeting a total 2.8% interest rate increase through the end of 2022.
Consequently, Egyptian gold retailers halted their sales and purchasing operations, amid expectations of a hike in the US dollar globally and a further devaluation of the Egyptian pound.
The Central Bank of Egypt raised its key interest rates unexpectedly in March by 1%, 100 basic points, which resulted in devaluing the Egyptian pound by 14% against the US dollar. Since March, the US dollar’s trading prices recorded a five-year high as a result.
The CBE offered the US dollar at £E18.44 for purchase and £E18.52 for sale. The dollar averaged at £E18.48 for purchase and £E18.52 for sale at major Egyptian banks on Monday.
