Gold prices fell by 0.3% last week in domestic markets, meanwhile, the yellow metal ounce decreased by 1.9% internationally. This is considered the biggest weekly decline by the ounce in more than 5 months due to the USD rise amid the victory of Donald Trump in the US Elections.
Saied Embabi, the Executive Director of Isagha platform, explained that the gram of 21-karat gold opened weekly transactions in domestic markets at EGP 3770, and closed at EGP 3760. On the other hand, the ounce opened the weekly transaction in international exchange at $2736, and closed at $2684, with a-$52-decline.
Embabi added that the gram of 24-karat recorded EGP 4297, 18-karat hit EGP 3223, and 14-karat estimated at EGP 2507. The gold pound reached EGP 30080.
According to the monthly report by Isagha, gold prices jumped in domestic markets by 6.3% last October, while the ounce increased by 4.4% in international markets.
Embabi highlighted that this price decline is a good opportunity for customers to buy in case the markets keep their stability because there is a chance for prices to increase. He added that Trump has to continue to add more interest rate declines to near 0%.
Last week, the US Fed decreased the interest rates by 0.25% to record 4.75% after keeping it unchanged 7 times before decreasing it by 0.50% last September.
Jerome Powell, the chairman of the US Fed, said that the labor market is still strong, asserting that inflation is in the right direction to reach 2%, pointing out that decreasing interest rates will sustain the economy's powers.
Isagha report revealed 5 factors of the new US President that could impact gold, including more balanced military directions, ending long escalations, enhancing the domestic production of oil, and supporting the US economy, and the USD.
The report referred to Trump's tendency to impose more tariffs on Chinese imports to support the domestic industry.
In addition, there is a chance for the US Fed to move towards a restricted monetary policy.
The markets are currently anticipating more remarks by the US Fed officials, in addition to the release of more economic data.
Contributed by: Rana Atef
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