Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Local Gold Prices Climb as Global Rates Dip Amid Economic Uncertainty

Gold Prices

Sat 16 Mar 2024 | 09:17 PM
Waleed Farouk

Gold prices in local markets experienced an increase, contrasting with the global trend where gold rates fell by 1% at the end of the last trading week. This global dip was largely due to economic data tempering expectations that the U.S. Federal Reserve might soon conclude its current cycle of monetary tightening and initiate interest rate cuts.

Saeed Embabi, the CEO of "iSagha," an online platform for trading gold and jewelry, highlighted that local gold prices saw an increase of approximately 10 EGP during Saturday's trading sessions compared to Friday's close. This uptick brought the price of 21-carat gold to 2960 EGP per gram, while globally, gold's price per ounce fell by $23, a 1% drop, to close at $2156.

Embabi provided further breakdowns for local market pricing: 24-carat gold reached 3383 EGP per gram, 18-carat was quoted at 2537 EGP per gram, 14-carat at about 1974 EGP per gram, and a gold pound was priced at 23680 EGP.

The movement in gold prices reflects broader economic currents, notably the U.S. inflation rates which saw a rise of 0.4% for February and an annual increase of 3.2%. This bolstered the strength of the dollar and the yields on U.S. Treasury bonds, contributing to the retreat in gold prices after a period of significant gains where ounce prices had hit peak levels. These economic signals indicate the persistence of a strict monetary policy by the U.S. Federal Reserve, tempering expectations for a rate cut in the early months of 2024. The Federal Open Market Committee's meeting, set for March 19 and 20, is keenly awaited for further policy clarifications.

This divergence in gold pricing dynamics accentuates the intricate relationship between local market dynamics and global economic conditions, showcasing gold's enduring appeal as a versatile investment and hedge, influenced by global financial policies and local consumer sentiment.