Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Local Gold Prices Rise Amid Speculation of US Federal Rate Cuts

Gold Service

Sun 12 May 2024 | 10:53 PM
Waleed Farouk

The local gold market witnessed a notable increase in prices over the last week, with a 1.5% rise, equating to a 45 EGP jump per gram, influenced by global market trends and expectations of interest rate cuts by the US Federal Reserve following disappointing US economic data. Gold investors are now closely monitoring inflation data expected to be released this week.

Saeed Embabi, CEO of the online gold and jewelry trading platform "iSagha," reported that the price of 21-carat gold began last week at 3085 EGP per gram, peaked at 3155 EGP, and closed at 3130 EGP. Meanwhile, on the global stage, gold prices increased by $59, opening at $2301 per ounce and closing at $2360.

Additionally, the price for 24-carat gold in the local markets reached 3577 EGP per gram, 18-carat gold was priced at 2683 EGP, 14-carat at 2087 EGP, and a gold pound was valued at approximately 25040 EGP.

Despite the overall weekly gain, gold prices dipped slightly by 5 EGP during Saturday's trading, aligning with the weekend closure of the global market, which also affected local trading dynamics. Embabi emphasized that local gold prices are now more closely aligned with global market trends, further influenced by an increase in raw gold supply due to higher resale activities by citizens capitalizing on the price surge. This has recently prompted raw gold traders to consider exporting, especially given the decreased domestic demand.

Embabi highlighted that the relevance of extending the initiative to waive customs duties on gold brought into the country by returning expatriates is diminishing due to these market dynamics.