The price of gold continued its dizzying ascent yesterday with the average price of one ounce reaching US$1214 on the European market. The increase is being seen in the local market as well.A gram of 21 karat is now sold at LE186, while 24 karat gold has reached LE212 and 18 karat costs LE159.
Observers expect further price increases within the next two months, which could drive the price of an ounce of gold to LE1500, meaning that one gram of 21 karat gold will cost more than LE200. Experts believe that the recent financial crisis in Dubai has cast a shadow over the gold market as people turn to gold as a safe investment.
Amir Rizk, member of the jewelers' trade association, said that global financial crisis, and the more recent debt crisis in Dubai, has caused investors to move to the relative safety of gold. Rizk said that an ounce of gold may jump up to LE1500, in part because it is the market is correcting low prices over the last five years.
