Local Gold Markets on Edge as Central Bank Decision Looms

Gold prices in local markets saw a dip this Thursday, influenced by a global decrease after US unemployment benefit figures were released. These figures were unexpectedly lower than forecast, suggesting that the US Federal Reserve might maintain its tight monetary stance.

Saeed Embabi, the Chief Executive Officer of "iSagha," an online trading platform for gold and jewelry, noted that today's midday trades saw gold prices recede by about 15 Egyptian pounds from the previous day’s close. He emphasized the market's current volatility, with prices oscillating between 2150 to 2240 pounds. The 21-carat gold gram was priced at roughly 2215 pounds, while the global rate for an ounce declined by about 20 dollars, settling at 1920 dollars.

Further insights on the pricing include:

A gram of 24-carat gold is priced at 2532 pounds.

18-carat gold gram standing at 1899 pounds.

14-carat gold gram fetching 1477 pounds.

A gold pound is priced at 17720 pounds.

On the previous day, Wednesday, gold prices in local markets fell by an approximate 15 Egyptian pounds. The trading for the 21-carat gold gram started at 2215 pounds, climbed to 2245 pounds, and wrapped up at 2230 pounds. Concurrently, on the global exchange, the ounce price dropped by around 8 dollars, starting trade at 1932 dollars, peaking at 1945 dollars, and concluding at 1940 dollars.

Local market participants now await a pivotal decision from the Central Bank's Monetary Policy Committee concerning the trajectory of interest rates. Predictions lean towards the possibility of maintaining the current rates without any changes. The Central Bank had previously raised interest rates in its March and May meetings, while February, June, and August meetings saw no alterations.

In related financial news from the US, unemployment aid requests stood at 201,000, a figure notably lower than the anticipated 225,000, and slightly down from 221,000 the preceding week. This lends further weight to the US Federal Reserve's inclination to push up interest rates.

Jerome Powell, Chairman of the US Federal Reserve, elaborated in a recent statement after affirming interest rates at approximately 5.50%. He stressed that the Fed's decisions are principally based on incoming data, especially concerning the economic outlook. Powell clarified that refraining from an interest rate hike in the current meeting doesn’t necessarily mark the end of increases, hinting at more potential hikes as most decision-makers deem necessary.