What is happening in the gold market, and why have prices fallen historically in this way, whether in Egypt or the whole world, and is this an indication that the prices of the yellow metal. It will witness a gradual decline during the coming period. We will tell you all the details in this video, so follow us until the end.
The Gold Billion Foundation, which specializes in gold prices, said that global gold prices witnessed a decline in trading this week, and this means that gold actually recorded its worst weekly performance in more than 3 years.
We return to saying that the reason for the decline in gold prices is the strength of the US dollar, because the relationship between them is inverse: if one rises, the other falls along, and this happened after US inflation rates stabilized and there was a state of uncertainty accompanying monetary policy expectations.
Therefore, global gold trading fell to the level of 2565 dollars per ounce, and the highest level was recorded at 2571 dollars per ounce and the lowest level was at 2554 dollars per ounce. On the other hand, the US dollar continued to shine against a basket of major currencies to record the highest level this year, especially after it received great support. From the moment Donald Trump won the US presidential elections.
We can say that the weakness of gold now reflects current expectations, that American monetary policy will be more complex during the coming year due to the new American administration headed by Trump, which will rely on financial and tax policies that will push inflation rates to rise, and thus the state of lowering interest rates will continue.
But the decline in gold prices is not evidence that the market has completely stabilized and prices will continue to decline because there are many other reasons that affect and determine the fate of the yellow metal other than the things we mentioned, such as, for example, conflicts and political tensions in the world, the situation in international shipping lines, and the policy of global central banks regarding buying gold. Which she considers a safe haven in crises.
When we come to measure this on international markets, especially the Egyptian market, Egyptians are now buying gold after its prices have dropped significantly. This is because it is a smart and guaranteed option to preserve the value of money, and it is also considered a safe haven for savings and investment.
Gold prices in the local market are determined on the basis of 3 factors: the first is the trading of the ounce on the global stock exchange, the second is the dollar exchange rate, and the third is supply and demand, and based on that, the price of a gram of 21 carat gold without manufacturing was recorded at 3,548 pounds for purchase and 3,528 pounds for sale, after it declined on… twice.
If you are going to buy, make sure of the jeweler and his credibility. You must know the name of the manufacturer, the details of the piece, and the price of the gold before purchasing, as well as the karat, grams, and hallmarks. Don’t forget to inspect the gold well before you buy and make sure that there are no scratches, cracks, or any errors.
Finally, we will tell you the ideal time to buy gold, which is that you stay away from the seasons of weddings and engagements, and also take advantage of periods of recession and falling prices like now, so that you can achieve returns and more financial profit after a while.
