The global gold market is experiencing fluctuation as part of the economic impact of the Russia-Ukraine War, losing nearly 13% of its value.
Higher yields on US treasury bonds decreased the demand for gold and thus reduced the global price of the shiny metal said consultant and CEO of Sky International Group Walid Soliman.
The volatility is reflected inversely in the Egyptian market. For many in Egypt, gold is a primary investment to hedge inflation. “It is the safest long-term investment. I haven’t taken on any job that would provide me with social insurance so basically, Gold coins are my retirement plan. The gold coins I bought five years ago are double their original price today,” 28-year-old journalist, Toqa Ezzidin, said.
After the Central Bank of Egypt devalued its currency, the price of the 21K eight-gram coin soared by roughly 37% last May as Egyptians rushed to purchase coins to minimize the impact of the three-year high inflation.
In the same month, the price of the yellow coin reached a record high of EGP 9640, said a jeweler in Cairo, before steeply declining by EGP 1000 in less than a week. Until mid-June, the coin’s value dropped by over 12% in just one month, but it is still 20.3% more valuable than last March.
Reporting and video production by Nour Eltigani.