3 minutes read | 22/10/23 - 29/10/23
22/10-29/10: Weekly precious metals prices & returns update – international gold rises - local gold rises, and more.
Market Watch
Weekly Change of Local & International Gold Prices
| Close | Close | Weekly Change | |
|---|---|---|---|
| International Gold (LBMA) ($/Oz) | 1,918.9 | 2,006.0 | ↑ 1.26% |
| International Gold (LMBA) ($/g) | 63.7 | 64.5 | ↑ 1.26% |
| International Gold ($/g) quoted in EGP | 1,971.1 | 1,995.9 | ↑ 1.26% |
| Local Gold (LE/g) (24k) | 2,776.0 | 2,931.0 | ↑ 5.58% |
| Premium/Discount* | 29.0% | 31.9% |
*Difference between the local and international traded price of gold
Weekly Change of Other Key Precious Metals Prices
| ($/Oz) | Close | Close | Weekly Change |
|---|---|---|---|
| Silver | 23.4 | 23.1 | ↓ -1.2% |
| Platinum | 899.2 | 906.9 | ↑ 0.9% |
| Palladium | 1,102.5 | 1,125.5 | ↑ 2.1% |
Weekly Returns of Local Gold Compared to Alternative Asset Classes
| Close | Close | Weekly Change | |
|---|---|---|---|
| Local Gold (LE/g) (24k) | 2,776.0 | 2,931.0 | ↑ 5.58% |
| EGX 30 | 21,616 | 23,262 | ↑ 7.61% |
| 1 Year EGP T-Bill** (Yield) | 25.5 | 25.8 | ↑ 1.18%*** |
| Official Exchange Rate | 30.95 | 30.95 | 0.00% |
** 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
International gold continued its meteoric rise last week increasing by almost 1.3% to close the week higher than the coveted $/Oz 2,000 mark, at $/Oz 2,006 compared to a close of $/Oz 1,981 during the previous week. This primarily came on the back of the stronger demand due to the Palestinian conflict compounded by recent market turmoil.
Last week the international gold price recorded a 6-month high surpassing the $/Oz 2,000 mark and recording a weekly increase of 1.3%. Since the beginning of the Palestinian conflict 3 weeks ago, the international gold price recorded a whopping 9% increase. Investors continue to seek refuge in the safety of gold despite higher U.S. interest rate, which has continued to drive prices upwards.
Amidst the recent geopolitical and economic turmoil, the cryptocurrency market has seen significant growth with Bitcoin increasing by 15-20% over the course of the past 2 weeks.
Local Update
Last week, the price of the 24k local gold increased by a massive 5.6% to close the week at LE/g 2,931 up from the previous week’s close of LE/g 2,776. This primarily reflects higher demand trends resulting from the recent Palestinian conflict, compounded by restricted supply in the domestic market.
Following the international gold price, local gold has seen significant gains during the month of October growing by almost 20% in one month. The local price of the 24k gold continued to gain ground due to the recent geopolitical and economic pressure facing Egypt and the region.