Gold Prices Jump by EGP 25 Domestically in Week

Gold prices jumped by 0.8% last week in domestic markets, following a 0.5%-increase in international markets.

Saied Embabi, the executive director of the Isagha platform, said that gold prices increased by EGP 25 last week. The gram of 21-karat opened the weekly transaction at EGP 3245, and closed at EGP 3270. Regarding the gold prices internationally, it started the weekly transaction at $2411, and closed at $2400.

In the same context, the gram of 24-karat recorded EGP 3737, 18-karat recorded EGP 2803, and 14-karat reached EGP 2180. The gold pound recorded EGP 26160.

The markets witnessed a sense of instability after the ounce hit a new record, before sharply falling due to the economic slowdown in China, and the increasing odds for Donald Trump's victory in the US Presidential Elections in November which led to a rise in the USD.

In the same context, US Fed decision makers to work on decreasing the interest rates, despite they failure in controlling the USD. However, the International Monetary Fund said on Thursday that the USD shouldn't decrease the interest rates until late 2024.

The statements of US Fed Chairman Jerome Powell supported the speculations about decreasing the interest rates before the inflation hit 2%. This will help the gold to rise to $2484.

Moreover, the latest released economic data showed lower than expected figures and this also increased the possibility of a decrease of the US Treasury Bond revenues in case of the US Fed decreased the interest rates.

The markets are still anticipating the release of more economic data which will determine the future of the interest rates, and inflation.

Contributed by Rana Atef