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Editor in Chief Mohamed Wadie

Gold Prices Rise 2.6% Globally Amid Speculation of U.S. Interest Rate Cuts

Gold Prices

Sat 11 May 2024 | 11:21 PM
Waleed Farouk

This past week saw a significant 2.6% increase in global gold prices, climbing by $59, as investors reacted to disappointing U.S. economic data and growing expectations that the Federal Reserve might cut interest rates. The surge highlights market sensitivities ahead of next week's anticipated inflation reports.

Saeed Embabi, CEO of the online platform "iSagha," which specializes in gold and jewelry trading, noted that within the Egyptian market, gold prices saw a modest rise of 5 EGP per gram during today’s trading. By the end of Friday, the price for 21-carat gold stood at 3140 EGP per gram, reflecting a cautious optimism as global markets closed for the weekend with gold priced at $2360 per ounce.

Detailing further, Embabi reported that 24-carat gold reached 3589 EGP per gram, while 18-carat and 14-carat gold were priced at 2692 EGP and 2094 EGP per gram, respectively. Additionally, a gold pound (an Egyptian unit of measurement for gold) was valued at about 25120 EGP.

Yesterday's trading session also witnessed a notable rise, with 21-carat gold starting the day at 3110 EGP per gram, peaking at 3155 EGP, and settling at 3135 EGP by the close. Conversely, the price per ounce briefly dipped by $16, starting at $2344, hitting a high of $2375, and closing the day at $2360.

Embabi emphasized the robustness of gold prices which, despite reaching their lowest levels last week, rebounded strongly by Friday. This rebound was bolstered by a significant rise in U.S. weekly jobless claims, signaling deeper economic stresses within the U.S. labor market. This backdrop of economic uncertainty and the prospect of lower interest rates continues to drive investors toward the relative safety of gold.