The rise of the dollar prevents the price of gold in Egypt from falling

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Gold prices in Egypt stabilized during trading today, Wednesday, as the price of a gram of 21 carat gold, the most common in Egypt, recorded about 6,180 pounds, without change from its level recorded in yesterday’s trading, despite the decline of the global ounce, supported by the rise of the dollar against the Egyptian pound to a high of 53 pounds, according to data from the “iSagha” platform for trading gold and jewelry online.

The price of a gram of 24-karat gold was about 7,063 pounds, and 18-karat gold was about 5,306 pounds, while the price of a pound of gold was about 49.44 thousand pounds, while the international ounce recorded about 4,138.98 dollars, a decrease of $22.38, equivalent to about 0.54%.

On the other hand, the price of the dollar in Egypt rose from 52.84 to 53.15 pounds, an increase of approximately 0.59%, which contributed to offsetting the impact of the global decline in gold and maintaining local prices at their previous levels.

Saeed Embaby, CEO of the iSagha platform, said that the decline in the global ounce does not necessarily mean a decline in gold in Egypt. The rise of the dollar against the pound, coinciding with the decline of the metal globally, can compensate for a large part of the impact of the global movement.

The markets are awaiting the US Federal Reserve meeting at the end of this month, amid expectations that the interest rate will be fixed at a range of 3.75% to 4%, with continued possibilities of raising it in December, according to developments in economic data.

Fixing interest rates does not necessarily mean a rise in gold, as the precious metal’s movements are determined according to the expected path of monetary policy, real returns, the strength of the dollar, and inflation and growth expectations.