Gold prices hover around historic highs
Date
9/23/2024 7:52:34 AM
(MENAFN) As Gold prices hover around historic highs, notably peaking at $1,625 per ounce, traders are observing a significant drop in local market demand for this precious metal. The surge to this peak price last Friday can be attributed to a mix of extraordinary global economic, political, and security factors.
In the local market, the current sale prices for different grades of gold reflect this increase. For instance, a gram of 21-carat gold was priced at approximately 53 dinars, with citizens able to purchase it for about 51 dinars. The sale price for 24-carat gold reached around 60.7 dinars, while the purchase price was approximately 57.9 dinars. Additionally, a gram of 18-carat gold was sold for about 47 dinars, with a purchase price of 43.5 dinars. The English lira, weighing 8 grams, was priced at about 427 dinars, and the Al-Rashadi lira, which weighs 7 grams, was available for around 378 dinars.
Rebhi Allan, the head of the Syndicate of Jewellery and Jewellery Merchants, explains that the historic rise in gold prices is linked to various factors, particularly the ongoing security situation in the Middle East. Recent tensions between Lebanon and Israel, coupled with continued violence in Gaza and the targeting of civilians—including women and children—are significant contributors to the rising gold prices.
Additionally, Allan highlighted the impact of the U.S. Federal Reserve's recent decision to lower interest rates by half a percentage point. This monetary policy shift has been pivotal in propelling gold prices to close at an unprecedented $1,621 per ounce last Friday.
This blend of geopolitical turmoil and changes in monetary policy creates a challenging environment for traders and investors in the precious metals market, affecting both the demand for gold and its pricing in local markets. As a result, despite record prices, the local appetite for gold appears to be diminishing.
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