Minister of Finance reveals a surprise about gold, inflation and tourism

Gold extended its losses for the third day in a row, hitting a four-week low.

Since gold recorded its highest historical level at the beginning of this month at $2080 an ounce, it has lost more than $100, down by 5% in less than two weeks, as this negative movement remains within the negative correction range on gold levels after recording record levels.

The reason for the decline in gold prices

According to the Gold Billion Foundation, the direct reason for pushing gold prices to decline this week is the return of the US dollar to the recovery in the financial markets in a way that made gold cheaper for holders of other currencies due to the pricing of gold in dollars, as well as the fading of fears of the US debt crisis.

Gold Billion explained that the dollar index, which measures its performance against a basket of 6 major currencies, recorded an increase today by 0.2%, and recorded the highest level in nearly two months at the level of 102.99, so that the dollar recorded an increase for the third day in a row, to rise on the weekly level by 0.4%.

Gold price in Egypt

The series of decline in local gold prices continues, as the markets witness an acceleration of decline, supported by the decline in global ounce prices and their stability below the psychological level of $2000 for the third day in a row, while the decline in the exchange rate of the pound against the dollar in the parallel market contributes to confirming this decline.

Today, Thursday, the most common 21 carat gold price recorded 2210 pounds per gram, with the gradual decline in prices continuing since the beginning of the week, while the gold pound recorded today 17680 pounds.

Gold prices have decreased since recording the highest historical level at 2800 pounds per gram by 590 pounds, down by 21% during a record period, which confirmed the view of some that the record levels previously recorded by gold were exaggerated and do not reflect the real price of gold.

Since the beginning of the week, gold has decreased by 200 pounds per gram, a decrease of 8.3%. This corresponds to a significant and noticeable drop in global gold prices since the beginning of the week by $30.

Also, the gradual return of confidence in the Egyptian markets helped to continue the decline in gold prices, especially at a time when the exchange rate of the pound against the dollar in the parallel markets was declining, which helped bring gold pricing locally closer to the global price.

Gold imports without customs

the initiative to allow gold imports to enter without customs or fees contributed to increasing the local supply of gold to meet the increasing demand during the recent period, in addition to the official announcement of the work of the first investment fund in gold, which contributed to the calm and control of the gold markets.

We may witness a return to increased demand for gold during the coming period, as citizens resort to buying gold at current levels that are encouraging to buy, which restores demand to increase, but the recent stability in the local gold market will achieve a balance between supply and demand, and even if prices return to rise, it will be within acceptable moves.

International bonds

Finance Minister Mohamed Maait stated that Egypt was able to pay international bonds during the first quarter of this year at a value of $3.5 billion, and indicated that he expected tourism revenues to rise by the end of the 2022-2023 fiscal year to $14 billion.

The Minister of Finance indicated that the end of 2023 will witness stability in the exchange rate and the beginning of controlling inflation rates, and he emphasized the Prime Minister's recent statements that Egypt has not and will not fail to pay its international dues, in response to numerous international reports that questioned Egypt's ability to fulfill its obligations.