The local gold markets are presently experiencing a decline in sales, as confirmed by Rafiq Ibrahim, the former head of the Gold Merchants Syndicate.
This has resulted in a decrease in gold prices, despite the global stock market’s current increase in the price of gold per ounce.
He also noted that the decrease in demand has prompted raw gold merchants to export, resulting in a decrease in prices below the world price to assure a profit margin during export operations.
Sales activity is also influenced by the purchasing behaviors of citizens, as per Ibrahim.
Sales activity increases when prices rise; however, markets undergo a slowdown and occasionally stagnation when prices stabilize or decline.
Ibrahim clarified that the local gold stock may be affected by an increase in the tempo of export, particularly if demand increases and citizens retain their gold.
Additionally, he observed that the supply in the markets is influenced by the inclination of citizens to sell for liquidity and profit, which is particularly pronounced in Egypt, where a substantial quantity of gold is stored in households.
“Supply shortage crises may arise due to increased demand and the continued cessation of imports.”