Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Local Gold Prices Dip; ECB Boosts Interest Rates by 25 Basis Points

Gold Service

Thu 14 Sep 2023 | 11:20 PM
Walid Farouk

Today's trading session witnessed an unexpected slide in gold prices across local markets, primarily influenced by the international market's declining ounce value. This decrease is noteworthy, especially considering the recent downtrend of the US dollar and a drop in US bond yields. An uptick in US inflation metrics further cements the Federal Reserve's commitment to its rigid monetary strategy, aimed at mitigating rising inflationary pressures.

Said Embabi, Chief Executive Officer of the renowned “iSagha” platform, shed light on the situation, noting a decline of approximately 5 Egyptian pounds in gold prices during today's trades, in comparison to the previous day's closing figures. Specifically, the 21-carat gold settled at a rate of 2,190 Egyptian pounds per gram, while there was a $6 decline for the ounce, bringing its total to roughly 1,903 dollars.

Breaking it down further, the 24-carat gold reached 2,503 Egyptian pounds per gram. Meanwhile, both the 18-carat and 14-carat gold rates were recorded at 1,877 and 1,460 Egyptian pounds per gram, respectively. The collective rate for the gold pound stood firmly at 17,520 Egyptian pounds.

In related financial news, the European Central Bank (ECB) took markets by surprise by announcing a rise in interest rates. The 25 basis point increase pushes the rate to 4.50%, defying prevalent market expectations that had predicted a stable continuation at 4.25%. This decision by the ECB also saw the lending rate jumping to 4%, marking a 25 basis point elevation.

Meanwhile, recent data on the US Consumer Price Index, unveiled on Wednesday, highlighted a 0.6% inflation increase for August. Significantly, the core Consumer Price Index, which excludes volatile factors like oil and food prices, expanded by 0.3%. This is a tad higher than what economists had projected, which was a modest 0.2% rise.