Saturday 29 February 2020
Books – Mostafa Eid:
Gold prices tumbled in global markets during Friday’s trading, unexpectedly, which was reflected in the price of gold in Egypt, due to fears of the spread of the new Corona virus.
According to Reuters, the prices of the precious metal recorded their biggest weekly decline since November 2016, in a week that witnessed sharp fluctuations.
Prior to this significant drop, fears of the Corona virus outbreak and its transformation into a pandemic prompted gold prices to rise in global markets over the past week, hitting a 7-year high of $ 1,688.66 an ounce on Monday.
However, with the increase in the state of fear of the rapid spread of the Corona virus and the expansion of the affected countries, investors in global markets moved during the trading yesterday, Friday, to liquidate the various assets, including gold, to record the price of a loss of about 59.3 dollars an ounce, or 3.61%, to the level of 1585.69 dollars at the end of trading.
This was reflected in local gold prices during trading today, Saturday, as the gram price witnessed a sharp decline, reaching 21 pounds at one time compared to its level on Friday.
The price of a 21-gram gold price fell today to 693 pounds, compared to 714 pounds yesterday.
The price of a gram of 18 carat gold today reached 594 pounds, and the price of a gram of 24 carat is 792 pounds, and the price of a pound of gold recorded about 5544 pounds.
Club Naguib, Secretary General of the Gold Division of the Cairo Chamber of Commerce, ruled out that gold prices will continue to fall during the coming days, as he sees that the decline that hit international prices yesterday was a big surprise, and therefore the decline reached its peak.
Naguib Masrawy said that what happened from the drop in prices yesterday was due to profit-taking operations with the trend of investors to sell large quantities of gold after reaching high levels in recent weeks with the growing fears of the spread of the Corona virus and the resort of investors to safe havens.
He added that he believes that after yesterday’s drop, investors will start buying gold again with the beginning of the week’s transactions in global markets tomorrow, Monday, with gold reaching attractive levels to buy again.
Naguib stated that the expected direction of investors to purchase with the decline in prices coincides with the continuing fears of the spread of the Corona virus and its impact on the global economy, which is what investors expect gold to return to rise.
But Wasfi Amin Wasef, head of the General Department of Jewelry and Jewelery, had another opinion, as he attributed the sharp decline in gold prices to the resort of some countries to liquidating part of the gold recorded in their cash reserves with the impact of their economic conditions due to the impact of the spread of the Corona virus and its repercussions on the global economy.
Thus, Wasef sees, according to what Masrawy said, that the continued decline in gold prices in the coming days is linked to the occurrence of more disposal in the gold registered in the reserves of the central banks of the countries that suffer from the spread of the virus spread to a degree that affected their economies, which leads to an increase in supply in The markets are therefore further declining.
He pointed out that if this does not happen, the situation will return to its expected nature by continuing the demand for gold as a safe haven with the spread of the virus, and thus prices will return to increase, as yesterday’s drop came out of expectations, and it was surprising for everyone, according to him.