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How The Rise In Price of The US Dollar Effects Gold Prices In Egypt

Derek Wolfe

Updated: March 22, 2022

gold prices in egypt
Editor’s Note:

EDITOR'S NOTE: Egypt’s central bank devalued its currency (the pound) by 14% after foreign investors pulled billions of dollars out of its treasury markets in response to the Russia-Ukraine war. Not only did this pose problems in the repricing of gold in its local currency, but gold traders also had to deal with this messy repricing in addition to the inherent volatility surrounding the yellow metal given the war in Ukraine and the global inflationary environment that’s advancing on a separate track. Take a look at the article below to see how gold prices in Egypt are a bit discombobulated. If you follow our newsletter, you might have come across a few articles in which analysts speculated a scenario in which Russia utilized its gold reserves for international transactions in place of the ruble—a situation that would further add to the repricing mess. If we can learn anything from this, it’s that gold is likely to see some turbulence ahead as investors attempt to price-in global monetary risks while gold itself may be subject to a radical repricing.

Confusion swept the Egyptian gold market on Monday, after the Central Bank announced a new rise in the price of the US dollar.

Gold prices in Egypt recorded on Monday were as follows:

  • The price of 24 carat gold recorded LE1018.
  • The price of 21 karat gold recorded LE935.
  • The price of 18 karat gold recorded LE801.

The international price of gold recorded LE1924.

Traders confirmed that uncertainty dominated about what the gold market will be like in the coming days.

The Central Bank announced following an extraordinary meeting Monday that it would be raising the interest rate by one percent, which prompted the banking sector to announce increasing the interest rate on savings certificates.

Gold experts expect significant changes in gold prices during the coming period, which are determined by the events of the Russian war on Ukraine, as well as the application of raising the interest rate by 25 points, according to the previous decision of the US Federal Reserve, which came to effect on March 16.

Originally published on Egyptian Independent.

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