Gold prices jumped by 0.6% last week in domestic markets. In addition, gold ounce prices jumped by 0.2% internationally after the release of the latest economic data.
Saied Embabi, the Executive Director of Isagha platform, said that gold prices increased by EGP 20 by the end of last week. He explained that the gram of 21-karat gold opened the weekly transaction at EGP 3580, and closed at EGP 3600. On the other hand, the ounce of gold opened the weekly transaction at $2653, and closed at $2657.
He added that the gram of 24-karat hit EGP 4114, 18-karat recorded EGP 3086, and 14-karat estimated at EGP 2400. The gold pound hit EGP 28800.
According to the platform, gold prices jumped in domestic markets by 13.4% since the beginning of 2024, and the ounce prices hiked by 28.9% in international markets due to the high gold demands of gold by several central banks, the escalations in the Middle East, and speculations of the near end of US Fed monetary restrictions.
Embabi revealed that gold turned its latest loses to revenues after the release of US Inflation data, in addition to the continuation of the geopolitical escalations in the Middle East. This could enhance the demands of gold by the central markets.
Last week, US authorities revealed the US Producer Price Index. The expectations speculate that this data could help the US Fed to decrease the interest rates.
There are some speculations for another decrease in the interest rates by the US Fed next month by 25 points.
Last month, the US Fed ended the monetary restrictions after decreasing the interest rates by 50 points.
Federal Reserve Bank of Dallas CEO Lorie K. Logan said that there is uncertainty about future economic speculations, although they reflect a necessity to loosen the process of interest rate decrease in the future.
Federal Reserve Bank of Boston CEO Susan M. Collins said that the monetary policies will depend on the released economic data.
On her side, Federal Reserve Bank of San Francisco CEO Mary C. Daly expressed that decreasing the interest rates once or twice this year is expected, adding that the latest decrease couldn't hint the estimation of the upcoming interest rate decreases.
In the same context, the markets are still anticipating the release for more economic data.
Contributed by: Rana Atef
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