Gold Prices Steady as 21-Carat Hits EGP 3,395

Gold prices remained stable in local markets on Saturday, coinciding with the weekend break for global exchanges. This followed a slight drop in the international gold price at the close of the week.

Saeed Embabi, CEO of the online platform "iSagha" for trading gold and jewelry, confirmed that the local market witnessed stability in gold prices today, in line with Friday's closing rates. The price of 21-carat gold, the most popular in Egypt, held at EGP 3,395 per gram, while the price of gold per ounce saw a marginal decline of $6, finishing the week at $2,497.

Embabi added that 24-carat gold was priced at EGP 3,880 per gram, 18-carat gold at EGP 2,910 per gram, and 14-carat gold at EGP 2,264 per gram. The price of a gold pound stood at EGP 27,160.

Gold prices in the local market had dropped by EGP 5 on Friday, as 21-carat gold opened at EGP 3,400 and closed at EGP 3,395. Meanwhile, the global gold price rose by $17 during the same period, with the ounce opening at $2,514 before closing at $2,497.

Embabi highlighted that local gold prices remain aligned with global market trends, particularly due to the stable exchange rate of the dollar, as well as fluctuations in supply and demand.

Recent economic data has played a significant role in shaping gold market behavior. The latest U.S. jobs report, closely watched by the Federal Reserve, came in below expectations. Economists had predicted an addition of 160,000 new jobs in August, but the actual figure was 142,000. This underperformance has major implications for monetary policy decisions.

Despite a slight drop in the unemployment rate from 4.3% to 4.2%, the total number of unemployed people rose from 6.3 million to 7.1 million over the past year, signaling persistent challenges in the labor market.

Embabi noted that the weak labor data, combined with the Consumer Price Index (CPI) showing inflation at a three-year low, has boosted expectations for a potential interest rate cut by the Federal Reserve. Markets are predicting a 100% likelihood of an interest rate cut during the Fed’s upcoming meeting on September 18, with a 25 basis point reduction anticipated. The Fed finds itself caught between the pressures of stubborn inflation and slowing economic activity.