Ukraine, Egypt explore preferential trade deal: Zelenskyy    Egypt, Russia's Rosatom review grid readiness for El-Dabaa nuclear plant    Mastercard Unveils AI-Powered Card Fraud Prevention Service in EEMEA Region, Starting from Egypt    Global tour for Korean 'K-Comics' launches in Cairo with 'Hellbound' exhibition    China's factory output expands in June '25    Egyptian pound climbs against dollar at Wednesday's close    New accords on trade, security strengthen Egypt-Oman Relations    Egypt launches public-private partnership to curb c-sections, improve maternal, child health    Gaza under Israeli siege as death toll mounts, famine looms    EMRA, Elsewedy sign partnership to explore, develop phosphate reserves in Sebaiya    Philip Morris Misr announces new price list effective 1 July    Egypt Post discusses enhanced cooperation with Ivorian counterpart    Egypt's Environment Minister calls for stronger action on desertification, climate resilience in Africa    Egypt in diplomatic push for Gaza truce, Iran-Israel de-escalation    Egypt teams up with private sector to boost university rankings    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger    Egypt, Tunisia discuss boosting healthcare cooperation        Egypt's EHA, Schneider Electric sign MoU on sustainable infrastructure    Sisi launches new support initiative for families of war, terrorism victims    Grand Egyptian Museum opening delayed to Q4    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Egypt discovers three New Kingdom tombs in Luxor's Dra' Abu El-Naga    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Gold falls back
Published in Ahram Online on 12 - 11 - 2019

Progress in the trade negotiations between the US and China has led to lower demand for safe-haven assets like gold.
Gold saw its biggest weekly loss in three years in the week to Monday, falling about four per cent from approximately $1,510 to $1,455 an ounce in the international market.
There was also a halt in the gold-buying spree by major economies like China and India. The latter's gold imports fell by 46 per cent in year-to-year comparisons to 20.8 metric tons in October. China also stopped buying gold in October for the first time after 10 months of continuously purchasing the yellow metal, accumulating 100 tons from December 2018 to September 2019.
Gold is considered by many to be a safe-haven asset, which makes investors buy the precious metal at times of economic or political instability.
Experts believe that the international trade war between the US and China is the main reason behind the fluctuation in gold prices in recent months, leading to a price of $1,510 an ounce last week, the highest since 2013. The all-time high was $1,921 an ounce in September 2011.
According to the news agency Reuters, officials from both sides said last Thursday that the two countries had agreed to roll back tariffs on each other's goods in a “phase one” trade deal.
“Talks between the US and China to resolve their trade conflicts have definitely contributed to the falling prices of gold,” said Ehab Wasef, deputy head of the Gold Division at the Federation of Egyptian Chambers of Commerce.
However, Wasef believes that the rising value of the Egyptian pound against the US dollar is also a main reason behind the falling prices of gold locally.
In the local market, a gram of 18, 21 or 24 karat gold was being sold for LE567, LE662 and LE757, respectively, on Tuesday. The prices were more than LE20 higher than a couple of weeks ago.
The Egyptian pound has been gaining ground against the dollar over the last few months, backed by stronger foreign-currency inflows, mainly from tourism and the remittances of Egyptian expatriates.
Net foreign reserves at the Central Bank of Egypt (CBE) at the end of September recorded about $45.118 billion, an all-time high, up by about $149 million from $44.969 billion at the end of August.
The London Metal Exchange announced on Monday that it doubted that any positive results would come out of the US-China trade talks, leading to a slight increase in gold prices internationally. An ounce of gold went up from $1,450 to $1,453 on Tuesday.
Wasef believes it is still a good time to invest in gold, as he believes the yellow metal will rise in value again over the coming months.
*A version of this article appears in print in the 14 November, 2019 edition of Al-Ahram Weekly.


Clic here to read the story from its source.