Geopolitical tensions likely to influence gold prices: Naguib Sawiris
Updated 12/9/2024 2:52:00 PM
Arab Finance: Gold prices are likely to jump on the back of the current geopolitical tensions, businessman Naguib Sawiris said during the sixth annual Hapi Conference.
Sawiris explained that gold prices have risen from $1,500 per ounce two years ago to the current level of $2,700.
He attributed this increase to a gap between supply and demand, with the number of new mines unable to match annual consumption levels.
He also noted that Russia and China account for half of the world's gold purchases, driven by concerns about the global reliance on the USD.
Additionally, Sawiris observed that China's recent return to gold purchases after a six-month pause has contributed to price stabilization after a temporary decline.
Addressing the challenges in gold exploration, Sawiris highlighted the extended timelines required to see returns, often taking three to four years.
Moreover, he acknowledged the risks involved in exploration but shared that his company's five exploration sites show positive initial results.
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