Gold prices recorded a remarkable decline over the past week’s transactions, with a decrease of more than 55 pounds per gram in the goldsmiths market, against the background of global prices falling from 1605 dollars to 1498 dollars so far, and the following are the main reasons for the decline of gold:
Decline in demand for the precious metal as investors tend to sell for profit
America’s plan to pump 700 billion dollars to save markets.
European stocks closed higher during the week’s closing sessions.
Investor optimism towards the European Bank to issue sovereign bonds.
Ambiguity about the fate of price movement and Corona affects demand rates.
Prices in Egypt fell from 730 to 680 pounds per gram.
Gold sales in Egypt have declined in the past two months.
Market experts warn against buying gold jewelry for the purpose of investing due to loss of workmanship when selling.
And gold prices rose on Friday morning, March 20, as the demand for safe haven assets outpaced the impact of a stampede towards liquidity in light of concerns about the economic damage caused by the Corona virus, but the yellow metal is heading towards the second weekly decline at a time when investors sold the metal to cover buying centers Margin in other assets
“It is definitely a hedging purchase of risks … What can you buy to hedge the weekend risks? You can have either liquidity or precious metals, that’s all there is to it,” said Jeffrey Halley, chief market analyst at Oanda.“.
Asian stocks expanded breathtakingly after gains on Wall Street, while the dollar crossed its highest level in 3 years as the epidemic caused a rush towards liquidity.
As for the other precious metals, palladium rose 3% to $ 1701.53 an ounce, and platinum jumped 4.6% to $ 613.54, but it is recording the largest weekly decline ever..
Analysts say that platinum and palladium will continue to record turmoil in the coming months after huge losses sparked by the outbreak of the Corona virus, before embarking on a temporary recovery supported by a supply gap in the palladium and the link of platinum to gold..
Silver gained in immediate transactions 5% to $ 12.72, but it is heading towards recording the second weekly decrease of about 15% since September 2011..
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