Gold prices declined by 2.5% in domestic markets, last month, following a decrease in gold ounce prices in international markets by 3.5%. This decline was driven by the victory of Donald Trump in the US elections, and his monetary and economic views which could impact the US Fed policy to decrease the interest rates, according to a report by Isagha platform.
Saied Embabi, the executive director of Isagha platform, said that gold fell by EGP 95 in domestic markets. The gram of 21-karat gold opened the weekly transaction at EGP 3545, and closed at EGP 3690. In the same context, the ounce opened the weekly transaction at $2634, and closed at $2650.
The gram of 24-karat recorded EGP 4217, 18-karat estimated at EGP 3163, and 14-karat recorded at EGP 2460. The gold pound reached EGP 29520.
Saied Embabi, the executive director of Isagha, said that gold prices witnessed unstable performance after Trump's victory due to his statements on future economic plans like decreasing taxes, and trade tariffs. This could drive inflation to hike, especially if these plans hindered the US Fed's plans to decrease the interest rates.
He added that the geopolitical escalations also played a role in the prices of gold as the demand for gold jumped, especially by the central banks.
Markets witnessed more speculations regarding the decrease of the interest rates by 25 points in next December's meeting.
Embabi concluded that the soon-to-release economic data could impact the decisions on interest rates.
Contributed by: Rana Atef
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