Why did the gold that was shining in the eyes of investors suddenly enter a spiral of terrifying losses? Is the gold that you relied on as a safe investment no longer guaranteed? What will happen to gold prices in the Egyptian market in the coming period? Does what is happening in the world have a direct impact on the goldsmiths market in Egypt or not? In this video, we will answer all these questions and try to understand together why gold declined in this way, and what expectations can affect your decisions.
Only two weeks ago, gold, which was at the peak of its glory, fell to its lowest levels in more than two months. The situation began to become clearer with the victory of Donald Trump in the American elections, which turned the balance of the global economy.
Let us simplify the matter a little.. When Trump won, the markets realized that the American monetary policy was heading towards more tightening, which means that the interest rates will remain very high, and this means that any investment that generates interest, such as American bonds, remains more attractive than gold that does not have a direct return.
The result was the exit of investors from the market and pressure on gold prices. Also, the yields on 10-year US bonds were close to 4.5%, and this increased the opportunity cost of holding gold. However, the strength of the US dollar, which increased thanks to expectations of monetary tightening, eliminated gold from It is valued in dollars, less attractive
But that’s not all. The second factor that hit the market is the decline in geopolitical risks. for him? Because people remain optimistic that the new Trump administration can reduce international tensions, whether in the Middle East or between Russia and Ukraine. This means that investors have stopped seeing gold as a safe haven… especially since Trump pledged to stop the war in Gaza and Lebanon, as well as between Ukraine and Russia. This means that the world in the coming period is heading towards greater stability and stability, meaning there are no fears about the future, meaning no one is forced to put their money in gold.
Well, this is universal.. What is the situation in Egypt?
This is a very, very important question.. Look, sir, the Egyptian market is directly affected by global factors. I mean, the rise of the dollar globally puts pressure on the Egyptian pound, and this increases the local cost of importing gold… But with the great decline that happened globally, gold prices in the Egyptian market may have witnessed a kind of decline. Relative stability despite the fluctuation of the pound
But here is something we must take into consideration: local prices are also affected by local demand, and demand usually increases during certain seasons, such as holidays and special occasions, and this can make prices fluctuate even if gold globally is in a state of decline.
Ok..what is expected in the coming period?
Analysts say that gold prices may face a corrective movement in the short term, but in the long term the picture is still not clear. If US inflation continues to be high, and the US Federal Reserve does not decide to reduce interest rates quickly, we may see more pressure on gold.
As for the Egyptian market, if there is stability in the pound or even a slight improvement, this may provide an opportunity for local gold prices to calm down a little.. but this is very linked to global developments that can raise or lower prices in the blink of an eye.
If you are thinking about investing in gold, you must ask yourself: Are you ready to bear these fluctuations? Do you think that gold actually still provides investment security? The coming days will be full of surprises, and the important thing is always that you are aware of all the details so that your decision is based on accurate information.
