Geopolitical Tensions ,Economic Uncertainty Push Gold Higher Again

Gold prices rose in local markets during trading on Monday, with the ounce rising on the global stock exchange due to increased demand and a declining dollar, amid escalating geopolitical tensions in the Middle East and international trade talks.

Gold prices rose in local markets by about EGP 30 during trading today, compared to the closing price of the week last Saturday evening. The price of 21-karat gold reached EGP 4,570 per gram, while the price of an ounce rose by about $40 to $3,244.

The price of 24-karat gold reached EGP 5,223 per gram, the price of 18-karat gold reached EGP 3,917 per gram, and the price of 14-karat gold reached EGP 3,047 per gram, while the price of the gold pound reached EGP 36,560 per gram. Gold prices in local markets fell by EGP 175 during last week's trading. The price of a gram of 21-karat gold opened at EGP 4,715 and closed at EGP 4,540. Meanwhile, an ounce fell by $121, opening at $3,325 and touching $3,120, its lowest level in a month, before closing at $3,204.

Gold prices rose with increased demand amid escalating geopolitical tensions in the Middle East and uncertainty stemming from fears of a decline in US and global economic growth. Moody's downgraded US sovereign debt on Friday, leading to higher yields.

Israel launched a ground offensive on the Gaza Strip. This military action comes just days after US President Donald Trump's visit to the Middle East. Meanwhile, the agency downgraded the US debt rating from Aaa to Aa1, citing rising interest costs and unsustainable debt growth. At the same time, the agency revised its outlook for the US from "negative" to "stable." Moody's noted that successive US administrations have failed to reverse ballooning deficits and interest costs. In a related development, markets are awaiting a number of statements from Federal Reserve members next week, as well as preliminary purchasing managers' indices and housing data.