In a recent statement, John Reade, Chief Market Strategist for Europe and Asia at the World Gold Council, revealed a significant surge in gold prices, noting a doubling over the past five years since 2019. Emphasizing the independence of this trend from the dollar’s value, Reade made the announcement during the “Gold As An Asset Class and Financial Instrument” press conference held on Monday.
Highlighting the global increase in price per ounce by an estimated $250, Reade attributed this growth to various global crises, including the repercussions of the COVID-19 pandemic and the ongoing Russian-Ukrainian conflict. He underlined gold’s resilience as a commodity, contrasting it with more volatile goods like wheat and oil. The rise in gold extraction, totaling approximately 220 tonnes in the last year, was fueled by heightened demand and increased trading activity among central banks and gold investment entities.
Moreover, Reade pointed to the significant growth in the Egyptian gold market in 2023, stating that gold serves as a beacon of stability amidst market fluctuations and is a valuable investment asset. He highlighted the surge in gold production and trade in emerging markets, particularly in India and China, which now collectively account for half of the global gold market share, marking a notable shift from the US dominance in the 1980s.
Anticipating further increases in gold prices, Reade cited consistent purchasing by central banks as a driving factor, noting strong demand in China and Turkey amid global political shifts.
Encouraging investors to diversify their portfolios with gold, Reade emphasized the Council’s commitment to enhancing investor education about gold’s significance, noting its stabilizing effect on financial portfolios. He suggested that any reduction in US interest rates would likely have a favorable impact on gold prices.
Andrew Naylor, Regional CEO for the Middle East and Head of Public Policy at the World Gold Council, reported a significant increase in gold trade within the Turkish market in 2023. Naylor also highlighted Egypt’s connection with gold, noting a rise in the country’s capital market alongside India’s market growth, indicating a strong intermarket relationship.
Observing substantial progress in gold trading within Egypt, Naylor noted its emergence as a traditional savings medium for numerous Egyptian households.
Sameh Eltorgoman, Founder and CEO of Evolve Investment Holding, expressed ambitions to collaborate with the World Gold Council to enhance Egypt’s gold market infrastructure and integrate it into international markets. Eltorgoman asserted Egypt’s potential to emerge as a key player in the African gold market, emphasizing the partnership’s vision to advance Egypt’s gold markets and their global integration.