Egypt Accelerates Steps to Become Regional Hub for Gold Production

FILE PHOTO: An employee sorts gold bars in the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, December 15, 2017. REUTERS/Leonhard Foeger
FILE PHOTO: An employee sorts gold bars in the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, December 15, 2017. REUTERS/Leonhard Foeger
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Egypt Accelerates Steps to Become Regional Hub for Gold Production

FILE PHOTO: An employee sorts gold bars in the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, December 15, 2017. REUTERS/Leonhard Foeger
FILE PHOTO: An employee sorts gold bars in the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, December 15, 2017. REUTERS/Leonhard Foeger

The Federation of the Egyptian Chambers of Commerce announced launching the first of its kind 2022 Nebu Expo for the production, manufacture and export of gold jewelry.

The three-day event will kick off on Feb. 19, with the participation of 30 major local gold companies.

On the sidelines of the event, the government will present its strategy to transform into a regional and international hub for the production of gold and goldsmiths.

Chairman of the Federation of Egyptian Chambers of Commerce Ibrahim Elaraby said the locally designed jewelry have been developed to compete with international products in this field.

He issued a press statement, which Asharq Al-Awsat obtained a copy of, noting that launching the first edition of the exhibition marks a new step on the path of partnership between the Egyptian government and the private sector to achieve economic development.

“Over the past two years, the government has taken various steps, in partnership with the private sector, to establish a strong base for the production of raw gold and gold bars on Egyptian soil,” the statement read.

Among these steps are the establishment of an integrated city for the manufacture and trade of gold, the first gold refinery to maximize the added value of gold resources and complete the value chain for gold production by maximizing local content.

Head of the Gold Division at the Chamber of Commerce in Cairo Hany Milad said that the conference that will be held on the sidelines of the exhibition will discuss various issues related to the production of gold jewelry and the development of the internal and export trade system for Egypt’s goldworks.

It will further tackle the legislation that motivates the production of goldsmiths, which would allow Egypt to become a regional hub for gold industry and compete in global markets in one of the global trade’s key sectors.

He pointed out that the seminars will discuss the latest developments in the industry and arts of designing gold jewelry.



Gold Poised for Biggest Weekly Fall in over Five Months on Dollar Strength

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
TT

Gold Poised for Biggest Weekly Fall in over Five Months on Dollar Strength

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices dropped on Friday, poised for their steepest weekly decline in over five months, pressured by a stronger dollar and as markets absorbed the implications of Donald Trump's victory and its potential impact on US interest rate expectations.

Spot gold fell 0.6% to $2,690.62 per ounce as of 9:50 a.m. ET (1450 GMT), and was down 1.6% for the week.

US gold futures shed 0.3% to $2,697.90.

The dollar index gained 0.3%, on track for a weekly gain, Reuters reported

"In the last month, the story has been the uncertainty risk of the election and if there was going to be normalisation of transition, but this election appeared to be very decisive on the White House," said Alex Ebkarian, chief operating officer at Allegiance Gold.

"A lot of risk-on assets started benefiting in terms of the potential future implication of policies, so we had money go out of metals into these alternatives."

The Federal Reserve on Thursday cut interest rates by 25 basis points, but indicated a cautious approach to further cuts.

Trump's victory has fuelled questions about whether the Fed may proceed to cut rates at a slower and smaller pace, given the former president's tariff policy.

However, Fed Chair Jerome Powell said the election results would have no "near-term" impact on monetary policy.

The prospect of rate cuts, starting with the half basis point reduction in September, has underpinned gold's record rally this year.

Although bullion is reputed as a hedge against inflation, higher interest rates reduce non-yielding gold's appeal.

"Should markets restore the odds for a pre-Christmas Fed rate cut...that should help keep spot gold above the psychological $2700 level," Exinity Group Chief Market Analyst Han Tan said.

On the physical front, gold demand in India faltered, while Japan and Singapore saw some buying.

Spot silver fell 1.3% to $31.58 per ounce, platinum fell 1.8% to $979.15, palladium shed 2.3% to $1,001.25. All three metals were heading for weekly declines.