Gold extends gains for 4th day, approaching highest level in a month

The price of gold rose in international markets for the fourth consecutive day on Tuesday, approaching the highest level in a month supported by a decline in the dollar and buying transactions from China.

Now the world's number two consumer, “China is importing large quantities of gold to meet [private] domestic demand,” according to Commerzbank in Germany. “China thus remains a crucial support for the gold price.”

In the local market, gold prices surged by about LE 3 per gram, while the price of 21 carat, the most popular, reached LE 263 per gram and 24 carat about LE 300 per gram, 18 carat settled at LE 225.

Rafiq Abbasy, deputy chairperson of the gold division at the Federation of Egyptian Chambers of Commerce confirmed to Mada Masr the higher domestic prices for gold of LE 3 per gram, in line with its global rise.

A significant rise of US$15 per ounce has been registered, reaching $1331 up on the $1316 of yesterday.

“The local market has been suffering from a deep recession for the past two years due to weakened purchasing power,” Abbasy explained, adding that the industry needs a long time to recover from its slump, provided that there is political stability and security, or else. “Otherwise, how can we work?” he added.

World Gold recovered about $150 of its losses after coming to its lowest level in three years at $1180.71 on June 28 last month.

The Federal Reserve, the US central bank, announced that it would maintain its stimulus program to support the Egyptian economy and will not put an end to it until it is sure that the economy can manage without this assistance.