It comes at a time when officials and experts in statements to ‘Sky News Arabia Economy’ have attributed the price hike to strong buying demand as it is a safe haven for their savings given the the limited supply, calling for no “rush to buy”, which is contributing to prices falling to their normal levels during the current period, due to what they have described as “exaggeration of the price yellow metal”.
What did the Egyptian minister say?
Egypt’s Minister of Supply spoke at a press conference today about gold prices and the government’s efforts to limit the sharp rise in prices, saying the amount of gold in Egypt is limited and therefore when demand exceeds supply, prices rise.
Moselhi added that there are 3 factors affecting the price of gold in the markets, namely the world price of the metal, the price of the dollar and the mechanism of supply and demand, indicating that there is a strong demand for bullion and gold. books over the past few weeks.
The minister said he would submit a proposal to the Egyptian Council of Ministers to allow Egyptians working abroad to import gold without customs to increase supply in the markets for a specified period, provided that this proposal be discussed with the Chamber of the Gold Industry to reach a consensus on this.
Retreat after historic leaps
According to weekend trading, the price of gold in Egypt jumped around 250 pounds per gram in one fell swoop, prompting stores and traders to temporarily halt the buying and selling movement until prices stabilize at a certain level, before prices drop slightly in recent years. hours.
The price of 21-karat gold, Egypt’s best-selling gold, hit around 2,750 pounds per gram (about $90) on Thursday, before now settling at 2,625 pounds (about $86).
The price of 24-karat gold also fell from the level of 3142 pounds (about 103 dollars) to 3000 pounds (98 dollars).
And Egypt’s supply minister’s adviser for gold industry affairs, Nagy Farag, said in statements to “Sky News Arabia Economy” that gold prices had risen “exaggeratedly”.
“Faraj” said there has been an increase in demand to buy gold in recent days, while there is no comparable supply, which has caused “price pressure and pushed them to rise “irrationally”, explaining that the price return to normal “is going to take some time.” .
In response to a question about the fair price of gold, the Egyptian official pointed out that it should not exceed 2100 pounds per gram of 21 carats, the most traded.
“unprecedented” request
In turn, the head of the gold division of the Cairo Chamber of Commerce, Hani Milad, clarified in statements to “Sky News Arabia Economy” the reasons for the increase in a number of points, including:
There is an abnormal and unprecedented demand that we have never seen before to buy gold in general, and so we have seen a wave of increasing and unwarranted price increases. Gold prices in Egypt are currently outside the global framework and the local market is currently governed by supply and demand mechanisms. The unavailability of gold ore and the increased demand for purchase caused prices to rise dramatically, as the merchant could not compensate for the quantities he was selling. We asked consumers to be careful when making a purchasing decision, as this will limit demand and therefore prices will fall relative to their normal range. Citizens should be aware that it is the consumer who controls the price, not the trader. When the demand increases, the price increases, and this hurts the trader in the first place because he is forced to buy new quantities at a higher price. than what he sold.
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