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Gold Prices Drop Sharply Due to Strong US Jobs Report and Reduced Demand in China


Gold Service

Sat 08 Jun 2024 | 09:20 PM
Waleed Farouk

Gold prices declined sharply in the global market, driven by a strong U.S. jobs report and decreased gold purchases in China. However, local markets in Egypt saw a slight increase in gold prices during Saturday’s trading session.

Saeed Imbabi, CEO of iSagha, an online gold and jewelry trading platform, reported that gold prices in Egypt rose by 10 EGP today compared to the close of the previous day, with 21-karat gold reaching 3,100 EGP per gram.

Imbabi noted a 5 EGP increase in gold prices during Saturday’s trading compared to Friday’s closing price, bringing the price of 21-karat gold to 3,110 EGP per gram. This rise coincided with the weekend closure of the global stock market. The price of a gold ounce ended the week with a 1.5% decline, dropping by 34 USD to settle at 2,293 USD.

Additionally, 24-karat gold was priced at 3,543 EGP per gram, 18-karat gold at 2,657 EGP per gram, and 14-karat gold at 2,067 EGP per gram. The gold pound recorded a price of 24,800 EGP.

On Friday, local gold prices fell by 55 EGP, with 21-karat gold opening at 3,145 EGP per gram and closing at 3,090 EGP per gram. Globally, gold prices dropped by 78 USD, with the ounce starting at 2,371 USD, peaking at 2,387 USD, and closing at 2,293 USD.

The price of gold peaked at 2,387 USD on Friday, the highest level since May 22, driven by expectations of interest rate cuts following reductions by the Bank of Canada and the European Central Bank earlier in the week. However, a strong U.S. non-farm payroll report caused gold prices to plummet.

The People's Bank of China announced a halt to gold purchases in May, ending an 18-month streak of net gold purchases. This announcement triggered sharp sell-offs in precious metals, with traders in Asia and Europe liquidating their gold positions.

Despite interest rate cuts by the Bank of Canada and the European Central Bank on Wednesday and Thursday, the ECB did not provide clear guidance on further rate cuts, likely proceeding on a case-by-case basis.

The U.S. Bureau of Labor Statistics' monthly employment report showed higher-than-expected job growth in May, with the private sector adding 272,000 jobs, surpassing the forecast of 182,000 jobs. The previous reading was 165,000 jobs.