Gold Recovers as Stagflation Fears Take Hold, Kamal Harris Impact

Gold prices rose in local markets today due to an increase in the global stock market. The rise is due to fears of "stagflation" and Kamala Harris' candidacy for the US presidential election.

Saeed Embabi, CEO of the "iSagha" platform for trading gold and jewelry online, stated that gold prices increased by 5 pounds in local markets today. The price of a gram of 21k gold reached 3,290EGP, while an ounce went for about $2,415.

Embabi added that a gram of 24k gold recorded 3,760EGP, a gram of 18k recorded 2,820EGP, a gram of 14k recorded about 2,194EGP, and a gold pound was about 26,320EGP.

Gold prices fell by 5EGP in local markets yesterday, opening at 3,290EGPper gram of 21k gold and concluding at 3,285EGP. Meanwhile, global gold prices rose by about 9 dollars, opening at $2,399 per ounce and concluding at $2,408.

According to Embabi, the increase in demand for gold in local markets following the rise in gold prices indicates consumers' behavior of increased demand when prices rise and decreased demand when prices stabilize or decrease.

Embabi noted that gold remains a safe haven for protection against market fluctuations and high inflation, and the rise in global gold prices is attributed to the increasing fears of stagflation, indicating high inflation amid slowing growth.

He continued that the nomination of Kamala Harris as a Democratic presidential candidate further strengthens gold's forces, as her financial policies are seen as continuing Biden's policy to reduce inflation rates, in contrast to Trump's expected more inflationary economic environment.

On Monday, economic data showed a 5.4% decrease in existing home sales in the United States for the month of June. This decline serves as additional evidence of an economic slowdown. The markets are eagerly anticipating the release of the preliminary global purchasing managers' index from Standard & Poor's for July and the US GDP data for the second quarter, which will be released tomorrow. This data is expected to provide more insight into the potential direction of US interest rates.