Gold prices have risen in local markets during Tuesday's trading sessions, aligning with an uptick in global bullion prices. Investors are eagerly awaiting U.S. economic data this week to gain clarity on the Federal Reserve's interest rate policy.
Eng. Saeed Imbabi, CEO of the online gold and jewelry trading platform "iSagha," stated that local gold prices increased by EGP 5 today, compared to the end of yesterday’s trading. Gold prices recorded EGP 3,295 per gram for 21-carat gold. Meanwhile, an ounce of gold increased by about $9, reaching $2,408.
Imbabi added that the price per gram for 24-carat gold reached EGP 3,766, while 18-carat gold was priced at EGP 2,824 per gram. Additionally, 14-carat gold stood at EGP 2,197 per gram, and the gold pound was valued at EGP 26,360.
On Monday, local gold prices saw a significant increase of EGP 20. The price per gram for 21-carat gold opened at EGP 3,270 and closed at EGP 3,290. However, gold prices saw a slight dip by $1, with the ounce opening at $2,400 and closing at $2,399.
Imbabi highlighted that gold lacks a strong short-term trend amidst mixed signals. Unexpected interest rate cuts by the People's Bank of China on Monday led to price declines. However, expectations of a Federal Reserve rate cut helped mitigate these declines, spurred by strong profit-taking after gold prices hit record highs.
The People's Bank of China cut the one-year loan prime rate, the five-year loan prime rate, and the seven-day reverse repurchase rate by 10 basis points to 3.35%, 3.85%, and 1.7%, respectively.
Additionally, President Joe Biden’s withdrawal from the 2024 presidential race has increased the likelihood of Donald Trump becoming the next President of the United States, with expectations of higher inflation rates during his potential second term.
In related news, Goldman Sachs maintained a positive outlook on gold in a note issued on Monday. The investment bank cited potential Federal Reserve rate cuts and stable Chinese demand as key drivers pushing gold prices to record levels.
Markets are now focused on the U.S. Gross Domestic Product (GDP) data for Q2, set to be released on Thursday, and the Personal Consumption Expenditures (PCE) Price Index data on Friday.
The global gold market has been experiencing significant volatility due to varying economic policies and political developments. The Federal Reserve's interest rate decisions have been a major factor
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