Gold prices doubled

Gold prices have seen a remarkable surge, doubling over the past five years since 2019 and this trend is independent of the dollar’s value. The gold price per ounce globally has risen by an estimated $250.This increase is attributed to the fallout from various global crises, rang-ing from the COVID-19 pandemic to the ongoing Russian-Ukrainian conflict.

Approximately 220 tonnes of gold were extracted in the last year, spurred by heightened demand and trading activity among central banks and gold investment entities. Also, there was a significant growth in the Egyptian gold market in 2023. Gold serves as a beacon of stability amidst market fluctuations and is a valuable investment asset.

India and China have seen a surge in gold production and trade, now accounting for half of the global gold market share, a stark shift from the US dominance in the 1980s.Substantial increases in gold prices are expected soon with consistent purchasing by central banks as a driving factor. Furthermore, there is a strong demand for gold in China and Turkey, which is intensifying amid global political shifts.

Investors should incorporate gold into their financial and investment portfolios and seek di-versification. Gold not only diversifies but also stabilizes financial portfolios. Furthermore, any reduction in U.S. interest rates is likely to have a favourable impact on gold prices.

Gold has as well a strong role as an investment vehicle within the Egyptian market, as evi-denced by its robust presence in the financial portfolios of institutions. Furthermore, there was a sixtyfold increase in gold trade within the Turkish market in 2023 and a substantial rise in Egypt’s capital market, in tandem with India’s market growth, reflecting a strong in-termarket relationship.Gold trading in Egypt has made significant strides, becoming a tradi-tional savings medium for numerous Egyptian households.

There is the ambition to enhance Egypt’s gold market infrastructure and foster integration with international markets since Egypt possesses all the necessary elements, from consumer interest and metal availability to investment demand, to emerge as a key player in the African gold market.