Based on this week's figures, gold prices will increase in the coming period. This week it recorded $1,517 per onus, stated Sabayik Misr, the branch of Kuwaiti-based Sabayik in Egypt's weekly report on Monday.
Gold prices have seen their highest in the past three weeks, closing at $1,511 on the New York Stock Exchange. The report cited the reasons being the US dollar weakness, market upheavals, and the absence of investors' venture appetite.
“All these conditions encouraged people to invest in gold as a safe haven amid elevated tensions," the report said.
Chairman of Sabayik Misr Ragab Hamed said that gold prices benefited as well from the US Federal Reserve decision last week to decrease interest rates for the third time in 2019 by 25 bps, which, in turn, decreased the dollar index to 97.1, down from 98.
While vice chairman of the company Wael Kabil said that the US business market data, announced last week, involved negative indices, in line with the decrease in interest rates and other global economic signs, which were in favour of global gold prices getting an upswing to register $1,500 per onus last week.
“Investing in the safe havens, such as gold, would support gold itself and other precious minerals, and investors would never ignore this fact unless the US dollar performs better,” he added.
As far as the domestic market is concerned, Kabil said that gold alloy sales had increased gradually since the beginning of the week, and the gram was raised to EGP 778, up from EGP 765.