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 Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

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 Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

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 rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.