Local Gold Prices Drop by EGP 50 Over the Week

Gold prices in local markets fell by 1.6% over the past week, ending on Saturday evening. Global gold prices also significantly declined by 3.4% by Friday, impacted by the US Federal Reserve meeting minutes and the US Purchasing Managers' Index (PMI) data. These factors have put substantial pressure on gold, reducing expectations for the Federal Reserve to end its monetary tightening cycle this year.

Saeed Embabi, CEO of the "iSagha" platform for trading gold and jewelry online, reported that local gold prices decreased by EGP 50 last week. The price of a gram of 21-karat gold started the week at EGP 3,165 and ended at EGP 3,115. On the global market, gold prices fell by $81 per ounce, beginning the week at $2,414, peaking at $2,451 on Monday, May 20, and closing at $2,333.

Embabi added that a gram of 24-karat gold was priced at EGP 3,560, 18-karat gold at EGP 2,670, and 14-karat gold at EGP 2,077. The gold pound stood at EGP 24,920.

On Saturday, gold prices dropped by EGP 5, with the 21-karat gold opening at EGP 3,120 and closing at EGP 3,115, coinciding with the global market's weekend closure.

Embabi explained that global gold prices fell this week after hitting an all-time high on Monday. Prices dropped more than 3.4% to settle at $2,333. This decline is attributed to profit-taking, a stronger US dollar, and rising treasury bond yields following the hawkish Federal Reserve meeting minutes, which reduced expectations of a rate cut and even suggested a possible rate hike if necessary.

He also noted that current expectations for global gold prices are trending downward. Markets are now awaiting US Personal Consumption Expenditures (PCE) data this week for clearer insights, which could reverse the trend and boost gold prices again.