Gold prices witnessed a continued decline in local markets during Monday's trading session on Wednesday, as the price of an ounce fell further on the global stock exchange.
This decline occurred despite the release of weak economic data, which suggests an increasing likelihood of a 50 basis point reduction in interest rates at the upcoming US Federal Reserve meeting this month.
In a statement, Saeed Imbaby, the CEO of the "iSaaga" platform for online gold and jewelry trading, said that gold prices decreased by 10 pounds during today's trading compared to the previous day's close, with the price of a gram of 21-karat gold now at EGP3,375, while the ounce has dropped by 4 dollars to $2,488.
Imbaby further noted that the price of a gram of 24-karat is EGP3,857, a gram of 18-karat gold is EGP2,893, and a gram of 14-karat gold is approximately EGP2,250, with the gold pound valued at around EGP27,000.
On Tuesday, gold prices fell by approximately EGP25 in local markets, with the price of a gram of 21-karat gold opening at EGP3,410 and closing at EGP3,385. Concurrently, global gold prices decreased by about 6 dollars, with the ounce opening at $2,498 and closing at $2,492.
In this regard, Imbaby explained that gold prices have overlooked the heightened expectations of a 0.50% interest rate cut by the Federal Reserve during its meeting on September 18. This is occurring amidst significant selling in global markets, despite the release of disappointing US manufacturing data, which has raised concerns regarding a potential bubble in artificial intelligence technology.
Imbaby also indicated that the anticipated interest rate cut of 50 basis points could bolster gold prices, driving them to unprecedented levels.
It's worth mentioning that markets are now looking forward to the release of US job openings data on Wednesday; however, a significant decline in job openings could heighten concerns about the labor market and increase the likelihood of a more substantial 0.50% rate cut by the Federal Reserve.
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