Gold Hits Historical Highs: $2680 an Ounce

Gold prices rose in local markets during Thursday's trading, with the ounce rising to new record levels after touching $ 2680.

The new barrier was achieved due to the low global real interest rates, intensifying geopolitical conflicts, and increasing expectations of monetary easing by the US Federal Reserve.

Said Imbabi, Executive Director of the “i-Sagha”, said that gold prices rose in local markets by EGP 10 during the transactions compared to the end of yesterday’s trading, in which the gram of 21-karat gold recorded EGP 3615 and an ounce on the global stock exchange rose by $20 to record $2676.

He added that the 24-karat gold reached EGP 4131, 18-karat registered EGP 3099, 14-karat gold sold at EGP 2410, and the gold pound hit EGP 28920.

On the other hand, gold prices declined in the local markets by EGP 5 during yesterday's trading.

The 21-karat opened trading at EGP 3615 and closed at EGP 3605.

Meanwhile, the ounce rose on the global stock market by $2, with transactions beginning at $2658, touching $267, and concluding at $2660.

Imbabi explained that gold prices on the global stock exchange are trading at levels that have exceeded their historical highs, recording $2680 per ounce.

He added the increase was achieved due to the low global real interest rates, the weak dollar, and increasing expectations of monetary easing by the US Federal Reserve.

Imbabi explained that gold prices on the global stock exchange are trading at levels that have exceeded their historical highs, recording $2680 per ounce.

He added the increase was achieved due to the low global real interest rates, the weak dollar, increasing expectations of monetary easing by the Federal Reserve, and expectations of cutting interest rates by 50 basis points by the end of the year.

Imbabi added that the decisions of the People's Bank of China, the Swedish Central Bank, and the Czech Central Bank to cut interest rates in recent days have strengthened gold and made it more attractive to investors.

He pointed out that the escalating conflict between Israel and Hezbollah has boosted investors' appetite for safe havens, including gold, which has pushed demand to its highest levels.

Although the higher-than-expected US new home sales data for August and strong mortgage applications on Wednesday did not pinpoint any evidence that the US economy is contracting, markets continue to expect another 50 basis point interest rate cut at a meeting in November.

While the US consumer confidence index fell to 98.7 in September from an upwardly revised 105.6 in August, investors' concerns have pushed gold prices to unprecedented levels this week.