Domestic gold prices surge as global stock markets dip
An employee shows gold bangles to a customer - REUTERS/Danish Siddiqui

CAIRO: Domestic gold prices rose 4 EGP on the gram Thursday, shadowing global price hikes on the precious metal as the U.S. and European stock markets plunged following disappointing U.S. data Wednesday, Amin Wassef, head of the Gold Division at the Federation of Egyptian Chambers of Commerce (FEDCOC), told The Cairo Post Thursday.

“Twenty-one carat gold was priced at 260 EGP ($36.35) per gram Thursday, while the 18 carat was valued at 222 EGP. The 24 carat was at 297 EGP and the gold pound coin was upped to 2,080 EGP,” Wassef said.

He attributed the rise in gold prices to the increase in the global market value to $1,244 per ounce. He added that the news might be welcome for what had up until recently been a poor Egyptian gold market.

“The domestic gold market has been witnessing a recession and turnout has been very low since the Eid al-Adha holiday that ended Oct. 7,” Wassef said.

On Wednesday, gold rose as global stock markets took a dive, and U.S. Treasury prices soared following disappointing U.S. data. The data aroused economic fears, while confidence in gold increased.

The gloomy economic forecast came largely in response to the IMF downgrading its global growth forecast last week for both 2014 and 2015.

The fund expected world economic growth to hit 3.3 percent in 2014, down 0.1 percent from its July forecast. While in 2015, it predicted 3.8 percent growth, down 0.2 percent from earlier expectations.

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