3 minutes read | 27/08/23 - 03/09/23
27/8-3/9: Weekly precious metals prices & returns update – international gold rises – local gold drops
Market Watch
Weekly Change of Local & International Gold Prices
| Close | Close | Weekly Change | |
|---|---|---|---|
| International Gold (LBMA) ($/Oz) | 1,915.0 | 1,939.0 | ↑ 1.25% |
| International Gold (LMBA) ($/g) | 61.6 | 62.3 | ↑ 1.25% |
| International Gold ($/g) quoted in EGP | 1,905.4 | 1,929.3 | ↑ 1.25% |
| Local Gold (LE/g) (24k) | 2,576.0 | 2,514.0 | ↓ -2.41% |
| Premium/Discount* | 26.0% | 23.3% |
*Difference between the local and international traded price of gold
Weekly Change of Other Key Precious Metals Prices
| ($/Oz) | Close | Close | Weekly Change |
|---|---|---|---|
| Silver | 24.2 | 24.2 | 0.0% |
| Platinum | 947.6 | 964.5 | ↑ 1.8% |
| Palladium | 1,230.0 | 1,222.0 | ↓ -0.7% |
Weekly Returns of Local Gold Compared to Alternative Asset Classes
| Close | Close | Weekly Change | |
|---|---|---|---|
| Local Gold (LE/g) (24k) | 2,576.0 | 2,514.0 | ↓ -2.41% |
| EGX 30 | 18,305 | 18,873 | ↑ 3.10% |
| 1 Year EGP T-Bill** (Yield) | 24.1 | 24.7 | ↑ 2.49%*** |
| Official Exchange Rate | 30.95 | 30.95 | 0% |
** When the yield on T-Bills increases the price of the security decreases, therefore the return is negative, and the opposite is true.
Global Update
The international gold price witnessed a 1.3% weekly hike to close last week at $/Oz 1,939, amidst diminishing expectations of further interest rate hikes.
Gold prices have been on an upward trend for most of August due to higher demand prompted by the expectation that the U.S. Fed will halt interest rate hikes for the remainder of the year.
Local Update
Last week, the price of the 24k local gold slid by almost 2.5% to close the week at LE/g 2,514 down from the previous week’s close of LE/g 2,576.
Although global prices have witnessed a recent increase, the local price of the 24k gold lost close to 2.5%. This recent decrease can be attributed to the recent stability in the foreign exchange market and the sufficient supply of gold within the local market. However local gold is still trading at around a 23% premium to the international price.