Egyptian 21-carat gold price to surpass EGP 3,000 by mid-2024
This forecast takes into account various global factors influencing gold markets worldwide and in Egypt in the upcoming year.
Global scope
Dahab Masr highlighted that gold is presently trading within a defined range, “with a support level at $2,013 per ounce and resistance levels around $2,027,” emphasizing that the primary trend for gold remains bullish, contingent on prices maintaining a position above the crucial support level of $2,013.
Such stability above this level could potentially signify a return to the upward trajectory, Dahab Masr added.
Backing up this analysis, major banks worldwide have also projected an upward trajectory for precious metal prices in 2024.
For instance, Goldman Sachs Bank predicts an upward trajectory for gold with a price target of $2,133 per ounce in 2024.
J.P. Morgan Bank presents a more optimistic figure, anticipating a price of $2,175 per ounce, while UBS expects the gold price to hover around $2,100 per ounce.
Long Forecast, a forecasting agency, projected a substantial rise to $2,200 per ounce by April of the following year.
These projections stem from several factors, including the decline in the US dollar index, expectations of potential interest rate cuts by the Federal Reserve in the first half of 2024, and the impact of the Israeli war on Gaza.
These factors instill confidence in the sustainability of the upward trend in gold prices, prompting investors to view gold as a long-term investment, a hedge against market volatility, and a secure asset.
Notably, since the eruption of the Israeli war on Gaza in early October, gold prices have steadily risen from $1,900 per ounce to $2,040 on Wednesday.
The World Gold Council (WGC) released a report in May, indicating that 24 percent of central banks worldwide intend to increase their gold reserves within the next year, driven by growing pessimism towards the US dollar.
Currently, gold is trading at around $2,040 per ounce, maintaining its position near the highest levels in over two weeks, according to Trading Economies.
Gold prices in Egypt
Dahab Masr anticipates that these global factors will inevitably impact gold prices in Egypt, leading to a projected increase in the price of 21-carat gold to EGP 3,000 by the end of the first half of 2024.
The surge in gold prices in Egypt can be attributed to investors seeking it as a safe asset amidst geopolitical tensions and currency fluctuations.