Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Local Gold Prices See 1.5% Increase Over the Week

Gold Prices

Sun 24 Mar 2024 | 10:50 PM
Waleed Farouk

During the past week, local markets saw a notable 1.5% increase in gold prices, coinciding with a 0.4% rise in the global market value of an ounce of gold. This uptrend is largely attributed to growing anticipation that the U.S. Federal Reserve may conclude its monetary tightening cycle and proceed to lower interest rates three times throughout the current year.

Saeed Embabi, the executive director of the "iSagha" online platform for gold and jewelry trading, reported an EGP 45 increase in local gold prices last week. The week began with 21-karat gold priced at EGP 2,980 per gram, reaching highs of EGP 3,250, and closing at EGP 3,025. Meanwhile, on the global stage, the price of gold per ounce started at $2,156, soared to a weekly high of $2,222 on Wednesday, and settled at $2,165.

Embabi further detailed that the price for 24-karat gold reached EGP 3,457 per gram, with 18-karat gold at EGP 2,593 per gram, and 14-karat gold at approximately EGP 2,017 per gram. Additionally, a gold pound was priced at around EGP 24,200.

Notably, gold prices increased by EGP 5 during Saturday's transactions, with the 21-karat gold opening at EGP 3,020 and closing at EGP 3,025, aligning with the global market's weekend pause.

Embabi previously remarked that last week's gold market experienced unexplained surges, considering the fair price for 21-karat gold should not exceed EGP 2,850, especially given the global market's decline and the dollar's depreciation. He criticized the local markets for adopting a seemingly arbitrary pricing strategy, lacking clear regulations or factors, and often influenced by whims and interests.

Additionally, gold prices in the global market reached an all-time high over the week, buoyed by the Federal Reserve's decision to maintain interest rates and comments by Jerome Powell, which bolstered expectations of at least three interest rate cuts this year.

The Federal Open Market Committee decided to keep the interest rate steady between 5.25% and 5.5%, its highest in 22 years. Federal Reserve Chairman Jerome Powell indicated potential interest rate cuts within the year if signs of slowing inflation emerge. According to the Fed's preferred inflation gauge, the current rate stands at 2.4%, still above the 2% target.