Egypt experiences record-high gold prices
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Raven Ruma
- . January 12, 2023
- . Update: January 12, 2023 9:58 pm
While the price of the 14-carat gramme increased by EGP 63.5 to reach EGP 1,220, the price of the 18-karat gramme increased by EGP 81 to reach EGP 1,564. The cost of a 21-karat gramme increased from EGP 1,054 in August to a record high of EGP 1,630 in December.
The price per gramme of 21-karat gold before to the Russian-Ukrainian War was EGP 1,013. Experts claim that both the local increase in gold prices and the rise in the value of the US dollar relative to the Egyptian pound on Wednesday, when the dollar reached an all-time high of EGP 29.7, are results of strong demand.
The Egyptian pound fell to its lowest level against the US dollar in early March, following the commencement of the war in February. It was trading at EGP 18.1 for purchasing and EGP 18.2 for selling, down from EGP 15.6 and EGP 15.7.
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The local surge in gold prices follows the publication of the IMF staff report on Tuesday regarding Egypt’s new loan programme, which includes more currency rate flexibility.
Globally, the price of an ounce of gold was $1,884 today, up $12 or 6% from $1,874 yesterday. Due to consumer optimism that the US Fed might not raise interest rates in the approaching review at the end of the current month, the dollar index has declined since the rise in global gold prices.
