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Will gold prices decrease in Egypt if the metal is listed on the commodity exchange?

Several questions about the inclusion of gold in Commodity exchangeEspecially since the pricing of gold is carried out according to a price equation that traders carry out based on the price of the dollar in the parallel market, not the official market, as the commodity exchange aims to include the precious metal and calculate its price daily according to the accepted price equation based on the dollar in the official market.

The commodity exchange held a meeting with gold factories on January 4, 2023, to discuss gold pricing mechanisms in Egypt, which is scheduled to be listed on the commodity exchange this year, after Ibrahim El-Ashmawy, head of the Internal Trade Development Agency and head of the commodity exchange, announced the start of a study on the inclusion of the gold commodity among the commodities traded in Commodity exchange with the aim of preventing manipulation and evaluating them according to supply and demand locally and globally in accordance with regulated standards.

According to a source in the gold market, discussions are still ongoing about mechanisms Gold pricing The consultations did not reach a final stage, and there will be another meeting to be determined later between the Internal Trade Authority and gold dealers and makers over the points of contention regarding pricing operations.

He indicated, in exclusive statements, that the issue is still under study, especially that gold market size It is not fully known, and that there are huge gold transactions that cannot be covered by the stock exchange, as the available quantities may not suffice the demand in the event that gold is listed on the stock exchange.

The commodity exchange targets all traded commodities, maintaining market stability, and gaining the confidence of traders in the commodity exchange, as the Egyptian government is keen to regulate the market and valuation at a fair price and reduce the circle of intermediaries, which leads to price stability in the market, stressing that the commodity exchange in Egypt will be the best stock exchange in the eastern region. The middle will always take precedence.

The commodity exchange regulates the relationship between the seller and the buyer, and it is not exclusive to a specific industry, but targets all food and agricultural products industries, indicating that the state’s reserves of important commodities will be offered to the private sector in order to control the prices of the local market.

And Ibrahim El-Ashmawy, head of the Internal Trade Development Agency and head of the Commodity Exchange, said in previous press statements that we may witness trading in gold on the commodity exchange during 2023, and that there is communication with the main players in the market to reach a final form for this matter.

Estimates were Stamp and scales interest The size of the gold market in Egypt ranges between 65 to 70 tons annually, according to previously published information, of which 80% is local production and 20% imported, in addition to large quantities that are not stamped in the market.

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