Gold Prices Decline by EGP 25 in Domestic Markets

Gold prices declined, domestically, by 0.8% last week. However, the prices of the ounce increased by 2%, internationally, last week, due to the escalating tensions in the Middle East.

Saied Embabi, the executive director of Isagha Platform, said that gold prices fell in domestic markets by EGP 25.

Embabi added that the gram of 21-karat opened the weekly transaction at EGP 3280, and closed at EGP 3255, while the gold ounce opened the weekly transaction at $2343, and closed at $2391.

In addition, the gram of 24-karat recorded EGP 3720, 18-karat estimated at EGP 2790, and 14-karat reached EGP 2170.

The gold pound recorded EGP 26040.

Mbabi explained that gold, prices jumped on Friday due to the breaking out of more regional geopolitical tensions. The price of the ounce rose to $2391 which reflects the attractiveness of the yellow metal in times of escalations.

He added that one of the main reasons for the rise in gold prices is the growing concern about the potential escalation between Israel and Iran, which prompted investors to go for safe economic instruments like gold.

However, gold prices continued to rise, despite the end of the Israeli-Iranian escalations by the end of the week, due to the decline of the USD and US bond revenues.

The official continued that investors received various economic data and indicators, including the statements of the US Fed officials, which speculate the intention of keeping the current monetary policies, and keeping the interest rates between 5.25% and 5. 5%.

Embabi pointed out that the markets are waiting for the release of personal consumption expenditures data, which will provide crucial insights into the latest trends in the US inflation rates, and may affect the future policy decisions of the US Fed.

He noted that as the global economic landscape continues to evolve, the value of gold as a safe haven remains constant, attracting investors seeking stability amidst a state of uncertainty.

Contributed by: Rana Atef