Will gold prices continue to decline?

Hany Milad, head of Egypt’s Gold and Jewelry Division at the Federation of Chambers of Commerce, has assured the public that gold will continue to serve as a safe haven and a crucial store of value. He stated that the current fluctuations in the gold market are normal reactions to global economic and political changes, and the recent decline in prices should not be a cause for alarm.

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Gold will remain a safe haven and one of the most important stores of value, adding that the price fluctuations the market is witnessing are normal given global economic and political changes.

Milad emphasized that gold has a long-standing history of preserving the value of money and generating long-term returns for investors. He cautioned against evaluating gold investments based on short-term price increases or decreases. According to Milad, citizens who purchased gold at higher prices have not incurred actual losses unless they have sold their gold. He clarified that the current decline represents a "paper loss," with real losses only occurring upon selling below the purchase price. He stressed that the primary aim of gold investment should be long-term returns, not short-term resale.

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The current decline in gold prices is not a cause for concern.

Several factors are currently pressuring gold prices, Milad explained, including rising oil prices, the U.S. Federal Reserve's monetary policy, and the strength of the dollar. However, he noted that these factors are temporary and should not be the sole basis for assessing gold's performance.

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Citizens who bought gold coins at high price levels did not incur actual losses as long as they did not sell them.

Predicting the future trajectory of gold prices, particularly for 21-karat gold, until the end of 2026 remains challenging due to the rapid and unpredictable changes in global markets and international monetary policies. Despite these uncertainties, the fundamental role of gold as a store of value is expected to persist.

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Investing in gold aims to achieve long-term returns, not buying with the intention of reselling it after a month or two.