Expectations of continued high gold prices result deteriorating U.S. economy and declining dollar - by yehia
Gold hit a historical record and break the barrier of 931 and expectations of his arrival at 1000 dollars per ounce R.
Political and economic conditions experienced by the world are the main drivers of gold rises insane.
The state of anxiety, tension and loss of confidence in international stock markets and rising oil prices the main reasons for the high precious metal.
Despite the high prices but there is a general situation of recession dominated most of the countries of the world.
Many investors resort to the disengagement and liquefying the deposits of cash and investment portfolios to buy gold bullion as the best investment areas.
World Gold Council recorded a decrease of demand in the Gulf markets and Egypt by 34 percent from 2005 and 2006 .
World gold market has seen huge rises in the last period and scored in the dealings last week 931 dollars per ounce to hit a historic high of not informing him earlier and experts attributed the cause of such rises to resort investors to buy the precious metal as a safe haven for value and speculation because of the credit crisis and reduce the interest rate the U.S. to 75 points Supported concerns about the deteriorating U.S. economy, which pushed the dollar to unprecedented declines.
In addition to the continuing rise of oil to record levels, which makes it a good opportunity for investors to compensate for losses suffered as a result of lower international capital markets after the mortgage crisis in America.
In spite of the fiction of gold rises, but the latest report issued by the World Gold Council showed that demand in the Gulf and Egypt markets retreated about 34 percent to record 26 tons in the first half of this year, down from 165 tons in 2006 and 220 tons in 2005 and considers this decline The largest among the regions of the world but the volume of demand in Saudi Arabia which is considered the largest Arab markets decline to less than 64 tonnes, recording a decrease of almost 29 percent came percentage drop in demand in other Gulf countries lower unit registered 18 percent and the question now is whether this will continue through Rises The coming days? Will gold already become the only alternative to surrounding against inflation experienced by developed countries in the world now? Is the best alternative for investing in currencies and bonds? What is the outlook for these goods is important factors affecting the rising economic factors only, or that it transcends much?
High and low
Attached Rafik Abbas, President of the general division of Gold dealers, the Egyptian Chamber of Commerce on the conditions of global and local gold, saying that the Egyptian market, like most countries affected by global markets Any rise or drop in world gold prices offset the rise and decline in domestic markets, but we find that the Egyptian market, although These huge rises in the commodity at the global level, however, sales in Egypt, much lower than in previous years and therefore the impact on the quantity of production and supply of these goods in the Egyptian market
As for the world market prices have been affected by several factors, notably shaken the U.S. economy, which started cast a shadow over many countries it seeks to acquire gold as security for their savings, in addition to the low dollar exchange rate before the rest of currencies that many investors tend to view investment liquefying their pockets buying gold To maximize their profits as such rises have affected the deposits of banks, which are checked by their owners to buy gold So I think that gold is now the best long-term investment areas.
As for the expectations of the continuation of this wave of rises, I believe it is possible during the coming days, a kind of corrective decline to reach the price to 700 dollars an ounce, but this performance will return to the world economy during the coming period.
He added Albert Boutros _ trader a gold manufacturers that what is happening in the market now is trying Kalhelm Ktjar absorb price of gold has jumped over the dealings last week, achieving a historic figure has not been achieved is absolutely 931 per ounce, a figure that we did not imagine happening over the past years has been the greatest rise However gold in January 1981 was 850 dollars per ounce.
And the arrival of the world price to this extent the result of several reasons the inception following the events of Sept. 11, 2001, which record the time the price of gold to $ 255 per ounce and continued to successive rises so far and permeate this period some of the events which have had a great impact, such as mortgage crisis that occurred in U.S. and impacted negatively on the international capital markets was the beginning of the ramifications of tension in the American economy and a decline of the dollar against other currencies in addition to political problems multiplied after the other day, she was such rises shadow on the rest of the world market and Arabic.
In the Egyptian market, prices have doubled over the past years more than 6 times as the price of one gram of gold to 145 pounds per gram during the past week compared with 25 pounds in 2000 despite the lack of demand for purchase only that the matter was continuing rises with gold completely different from any other commodity It does not rise by consumers today, we trade affected the purchasing power and suffer from a drop in purchasing Unlike past to the degree of price rise has made so much not on our side and led to the deterioration of the industry for lack of quantity of gold produced in addition to that there are many workshops Goldsmiths began absorbing this Is produced in Egypt and the crews of the lightweight gold does not exceed the ¯ 40 grams to fit any man on the verge of marriage so that it can absorb part of the crisis because of stagnant commodity low per capita income in Egypt.