Over the past week, gold prices in the global exchange dipped approximately 1.9%, ending on Friday. The surge in the dollar, in light of Federal Reserve Chairman Jerome Powell's firm stance during his testimonies before the House and Senate on the preceding Tuesday and Wednesday, is believed to be the main cause.
These developments further fuelled expectations of a continued upward trend in interest rates in the near future.
Fadi Kamel, Executive Director of Gold Egypt for Trade and Market Trend Analysis, shared that gold prices on the global exchange rose by $38 over the past week. Gold opened at $1958 per ounce and ended the week at $1920. This increase is attributed to heightened expectations of a rise in American interest rates in the near future, following Powell's statement on persisting with a tight monetary policy.
Despite this, concerns about a slowdown in economic growth and the potential to maintain or decrease interest rates at the beginning of the next year, given a weakened banking system, contributed to the stability of gold.
Kamel further added that local gold prices have remained stable at the start of Saturday's trading, coinciding with the global exchange's weekly break. The 21-karat gold was trading at around EGP 2215 per gram, whereas the 24-karat gold was approximately EGP 2531 per gram. The 18-karat gold was traded at about EGP 1898 per gram, and the gold pound was approximately EGP 17720.
Gold prices saw a surge of EGP 15 in local markets during Friday's trading. The 21-karat gold per gram opened at EGP 2200 and rose to EGP 2245, ending the day at EGP 2215. Meanwhile, gold in the global exchange saw a $5 increase per ounce, opening the day at $1915, peaking at $1932, and ending the day at $1920.
Kamel elaborated that the local gold market has seen an improvement recently, driven by several factors. Among them are a significant increase in demand against the backdrop of falling prices, and citizens' anxieties around price fluctuations following Eid Al-Adha, as well as an upswing in demand for gold ornaments due to an increase in planned engagement and wedding ceremonies.
Kamel also highlighted that the extended holiday in the gold market, combined with rising demand, has led to a supply shortage, and subsequently, a spike in prices. Most traders suspended dealings by mid-day due to uncertainty in replacing the sold gold for customers due to cash availability and liquidity constraints.
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