Gold prices plunged in the local markets during Monday’s trading session despite a rise in the ounce on the global stock exchange by about 0.10%, driven by a decline in the dollar.
This came amid investors’ prediction of US economic data this week that may affect the Federal Reserve’s decision on the fate of interest rates.
There is also a possibility of slowing the pace of raising interest rates by 25 basis points at the next meeting of the Monetary Policy Committee (MPC) on 31 January and 1 February 2023.
Saeed Embaby, CEO of i-Sagha platform, noted that gold prices went down by about EGP 5 in the local markets during today’s trading session.
Embaby stated that the 21-karat recorded EGP 1,775 and the gold ounce hiked to $1,928. Meanwhile, the gold pound hit EGP 14,200, whereas the 24-karat reached EGP 2,029. The 18-karat stood at EGP 1,522 and the 14-karat was valued at EGP 1,184.
The CEO highlighted that markets are witnessing a state of relative calm in anticipation of the US Federal Reserve’s decisions at the end of this month, which will have an impact on the movement of gold prices during the coming period.
The local market is also awaiting the meeting of the MPC of the Central Bank of Egypt (CBE) to decide the interest rate on deposits and lending on 2 February.