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Editor in Chief Mohamed Wadie

Global Gold Prices Down 2.3% Over the Week Amid Inflation Concerns

Gold Prices

Sat 27 Apr 2024 | 04:10 PM
Waleed Farouk

Gold prices on the global market fell by 2.3% this past week, dropping $54 by Friday's close. Despite the decline, the precious metal remained relatively stable after U.S. inflation data was released, ahead of the much-anticipated Federal Reserve meeting scheduled for May 1, which will likely influence future interest rate decisions.

Saeed Embabi, CEO of "iSagha," an online platform for gold and jewelry trading, reported a slight increase in local gold prices today compared to yesterday's close. The price for a gram of 21-karat gold reached 3,110 EGP, aligning with the weekend closure of the global market, after closing on Friday at $2,337 per ounce.

Embabi added that the price per gram for 24-karat gold is now 3,554 EGP, for 18-karat gold 2,666 EGP, for 14-karat gold 2,074 EGP, and the gold pound (an Egyptian unit of measurement for gold) is priced at 24,880 EGP.

Friday’s market showed a slight increase in gold prices, with 21-karat gold starting at 3,100 EGP and closing slightly higher at 3,105 EGP. The price for an ounce of gold opened at $2,334, peaked at $2,350, and settled at $2,337 by the end of trading, marking a $20 gain.

Additionally, March's inflation rates in the United States exceeded annual projections, signaling that the Federal Reserve may maintain its strict monetary policy and postpone interest rate reductions until at least September.

The U.S. Department of Commerce revealed that the Personal Consumption Expenditures (PCE) Price Index, excluding food and energy, increased by 2.8% year-over-year in March. The core PCE Price Index rose by 0.3% month-over-month, with the overall annual PCE Price Index reaching 2.7%.

The report also noted a 0.5% rise in personal income and a 0.8% increase in personal spending last month.

As financial uncertainties persist, gold continues to be a favored asset among investors seeking a reliable hedge against inflation.