Dollar Recovery, Profit-Taking, Declining Uncertainty Curb Gold's Rise

Gold prices declined in local markets during trading on Thursday, as the ounce on the global stock exchange declined after touching an all-time high. This was due to profit-taking, a recovering dollar, and declining economic uncertainty in the markets.

Gold prices declined in local markets by about 20 Egyptian pounds during today's trading, compared to yesterday's closing price. The price of 21-karat gold reached 4,780 Egyptian pounds per gram, while the price of an ounce fell by about $80 to $3,323, after touching its all-time high of $3,358.

The price of 24-karat gold reached 5,463 Egyptian pounds per gram, while the price of 18-karat gold reached 4,097 Egyptian pounds per gram. The price of 14-karat gold reached 3,187 Egyptian pounds per gram, and the price of the gold pound reached 38,240 Egyptian pounds per gram. According to the daily report of the "iSaaga" platform, gold prices in local markets rose by EGP 160 during trading on Wednesday. A gram of 21-karat gold opened at EGP 4,640 and closed at EGP 4,800. Meanwhile, an ounce rose by $113, opening at $3,230 and closing at $3,343.

Gold prices have risen to record levels, amid declining purchasing power, which will further slow sales in the markets.

Meanwhile, local markets await the decision of the Central Bank's Monetary Policy Committee today, Thursday, to review interest rates on deposits and loans. The Central Bank of Egypt decided, at its last meeting, held on February 20, to maintain the overnight deposit and lending rates, as well as the central bank's main operation rate, at 27.25%, 28.25%, and 27.75%, respectively. The credit and discount rates were also kept at 27.75%.

Gold prices declined on the global stock exchange, affected by investors' resale appetite for profit-taking after the unprecedented rise in the ounce, amid a slight rise in the dollar after hitting its lowest levels in trading on Wednesday.

Significant progress in the trade negotiations between the United States and Japan has eased concerns about potential global economic turmoil.

The US-Japan trade talks and hawkish remarks from Federal Reserve Chairman Powell have led to a slight easing of uncertainty in the global market. The US dollar has faced a strong sell-off in recent months, as market fears of slowing economic growth and entering a recession have grown, driven by Trump's tariff policies. Markets expected that imposing higher tariffs on all imports into the United States would increase inflation and impact economic growth. Additionally, the slightly hawkish comments from Federal Reserve Chairman Jerome Powell at the Economic Club of Chicago on Wednesday provided some support to the dollar. Powell noted that the US economy remains strong, despite Trump's economic policies having mitigated economic risks. "The US economy is resilient despite increased uncertainty and downside risks," Powell said. He expressed confidence that the economy remains in a position to await further clarity, giving him the confidence to avoid any adjustments in monetary policy.