Gold prices rose on Sunday, with a pound of gold valued at LE5,040, while a gram of 24-carat gold cost LE720.
The average price of 21 carat gold was LE630, while 18 carat gold reached LE540 and 14-carat gold LE420.
Traders said that the rise in gold prices is due to the increase in the dollar exchange rate on the black market, in addition to high prices on international stock exchanges.
Amir Rizk, president of the Jewelers Division, said that the market is in the grip of a recession due to the dollar exchange rate and strong consumer inflation.
Dramatic price increases have hit the market, causing a state of paralysis in selling and buying, he said, adding that the decline in sales has led some gold traders to suspend their business and rent out their shops.
Rafik al-Abbasi, chairman of the Gold Division of the Federation of Industries, said that the dollar exchange rate is the main factor behind the price increase, while the decline in sales is normal in light of high consumer inflation.
The alternative is to export gold, he said, but many are reluctant to take this step due to the bureaucracy surrounding export procedures.
Edited translation from Al-Masry Al-Youm
