Gold Prices Up 0.4 Percent To 208,943.78 Shillings An Ounce

Global gold prices on Wednesday 6^th July 2022 are up 0.4 percent to 208,943.78 shillings per ounce.

Gold futures on Multi Commodity Exchange were slightly higher at 76,523.28 shillings per 10 gram, while silver edged up to 84,743.48 shillings per kg.

This is after falling 2.3 percent to 208,568.54 shillings per ounce on Tuesday 5th July 2022; the lowest rate ever witnessed since December in intraday trading. Silver rates also slummed around 3 percent on the same day.

In the international market, grates hit nearly seven-month lows while silver slipped to 2-year lows. Both commodities crashed vertically on Tuesday after the dollar index hit 20-year highs and crossed 106 marks of global recession fear.

The US dollar index traded sharply higher near 106 levels, supported by safe-haven buying and weakness in the Euro as soaring energy prices in Europe continue.

Higher interest rates and bond yields also raised the opportunity cost of holding bullion, which yields nothing.

Currently, gold has support at $1755-1742, while resistance is at $1782-1794. Silver supports $19.30-19.05, while resistance is $19.95-20.20.

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Gold ounce price in Kenya as of 6^th July 2022 is 208,539.34 shilling, while th gram price is 6,705.45 shillings per gram 24K, 6,146.66 per gram 22K, 5,867.26 shillings per gram 21K, and 5,029.08 shillings per gram 18K.

According to Mineral Commodity Summaries, 2021 by the United States Geological Survey (USGS), the estimated world reserves of gold were about 53,000 tons of metal content.

The gold reserves are mainly located in Australia (10,000 tons), Russia (7500 tons), the USA (3000 tons), South Africa (2700 tons), Peru (2700 tons), Indonesia (2600 tons), and Brazil (2400 tons).

This means that most African countries majorly import gold and gold products from these countries.

Recently Uganda announced the discovery of a deposit of 31 million tons of gold ore, with extractable pure gold estimated to gross 320,000 tons. According to experts, this could bring some change to the African and the world gold market.

The Ugandan government has already licensed the Chinese firm Wagagai Gold Mining Company to start production in the Busia district in eastern Uganda.