The global price of gold surged to a level not seen in 46 years, particularly since 1979, with an ounce reaching US$ 4,413.
This surge was driven by expectations of a US interest rate cut, which boosted investor confidence in the precious metal as a safe haven.
In the local market, the price of a gram of 21-karat gold jumped by LE 80 to reach LE 5,865, while 24-karat gold reached LE 6,702, 18-karat gold at LE 5,027, and a gold sovereign coin is at LE 46,920.
Gold broke the $4,000 per ounce barrier for the first time in its history, amid expectations of its largest annual gains since 1979.
Gold jewelry expert, Amir Rizk, explained that the local market is currently unstable and advised citizens to refrain from buying or selling until after the New Year’s holiday to restore stability.
The Vice President of the General Division for Gold and Jewelry, Lotfy Mounib said that the global gold price index witnessed a significant increase on Monday, coinciding with the opening of gold markets, reaching a new record high.
He added: “Although the rise in the price of gold implies a decrease in the value of the dollar, the high interest rates achieved by the US and the influx of foreign investors seeking it as a safe savings method have fueled the price increase.”
Further price increases are expected, Mounib said, especially given the escalating oil dispute between the US and Venezuela.
He explained that local prices have already risen due to the global increase, as well as supply and demand factors, indicating that further price movements are anticipated at the beginning of next year.
Edited translation from Al-Masry Al-Youm
