The first gold auction in Egypt.. What is its impact on prices?

Next week, the Egyptian market will witness the holding of the first electronic gold auction, via the Commodity Exchange trading platform.

The auction, organized by the Stamps and Weights Authority, is the first of its kind in Egypt, and witnesses the offering of 107 bullion bars, distributed between 66 gold bars and 41 silver bars.

Egyptian gold market

Gold prices in Egypt have witnessed jumps during the recent period, and have become more closely linked to local factors, unlike the neighboring Arab markets, which are linked to the international metals stock exchange.

This was clearly evident during this week’s transactions, in which prices in the Egyptian market recorded an increase, despite the decline witnessed by an ounce of gold globally.

Gold auction in Egypt

The CEO of iSagha, an online gold and jewelry trading company, Saeed Embabi, said that the gold auction, held by the Stamps and Weights Authority, includes bullion only, explaining that it will be offered at the market price.

He added in a press statement that the bullion is issued by the Stamps and Weights Authority, as it is the owner of the auction for the benefit of government agencies, and whoever wins any of the bullion will have absolute freedom to deal with it, whether by remanufacturing it or selling it again.

Gold price in Egypt

Regarding the impact of the auction on gold prices in the Egyptian market, Embabi ruled this out, explaining that the price remains subject to supply and demand in addition to the dollar exchange rate in the markets, which he said has become the second most influential factor in the price of gold in Egypt.

He pointed out that the auction to be held will not witness participation from individuals, but rather only merchants and manufacturers will participate in it, in light of the value of the auction deposit amounting to two million pounds, and the price of the specifications document is 3 thousand pounds.

Nabiu Gold Exhibition

In the context of interest in the gold market as well, the Ministry of Supply and Internal Trade is preparing to hold the International Jewelry Exhibition “Nebio”, which will be held from the 26th to the 28th of this November, and will witness an increase in the exhibition area from 5 thousand to 7.5 thousand square meters to provide the opportunity for the largest number of companies. To participate in the exhibition.

Initial indicators show that the exhibition will witness an increase in demand, whether from exhibiting companies or visitors locally or from various foreign countries, such as Turkey, Lebanon, the Emirates, Italy and India, especially with the efforts of the Ministry of Supply to prepare for the third edition of the exhibition.

During the first 9 months of this year, Egypt's exports of gold and jewelry declined to record about $1.11 billion, equivalent to about 34.2 billion pounds.