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Editor in Chief Mohamed Wadie

Gold Prices Surge Amid Expectations of US Interest Rate Cuts


Gold Prices

Thu 16 May 2024 | 05:58 PM
Waleed Farouk

Gold prices have seen a significant rise in local markets on Thursday, driven by a strong performance in global markets.

This surge is supported by a weakening US dollar and declining US bond yields, following a slowdown in US inflation rates, which has renewed expectations of potential interest rate cuts by the Federal Reserve.

Saeed Embabi, the CEO of "iSagha," an online platform for trading gold and jewelry, reported that gold prices in local markets increased by EGP 10 today compared to the close of trading yesterday.

The price of 21-karat reached EGP 3,135 per gram, after touching EGP 3,155 at the start of trading.

Meanwhile, the global market saw the ounce of gold stabilize at $2,384, down slightly from $2,390 in the morning session.

Embabi further noted that the price of 24-karat recorded EGP 3,554, 18-karat reached EGP 2,666, and 14-karat was priced at EGP 2,074.

Additionally, the gold pound was valued at EGP 24,880.

On Wednesday, gold prices had also risen in local markets by EGP 15.

The price of 21-karat opened at EGP 3,110, peaked at EGP 3,135, and closed at EGP 3,125.

Globally, gold prices increased by $33, with the ounce starting at $2,355, hitting $2,388, and ending the session at $2,384.

Embabi pointed out that recent economic data support the rise in global gold prices and increase the likelihood of the ounce surpassing the $2,450 mark in the near term, especially as the Federal Reserve begins to lower interest rates.

In related news, the US Bureau of Labor Statistics revealed on Wednesday that the Consumer Price Index (CPI) rose by 0.3% in April and by 3.4% over the past year.

The annual CPI for April increased by 3.4%, matching expectations, though it slightly decreased from the previous reading of 3.5%.

On a monthly basis, the core inflation measure increased by 0.3% in April, below the forecast of 0.4%, with March recording a 0.4% rise.

The core CPI, excluding food and energy, grew by 3.6% year-over-year in April, following a 3.8% increase in March.

On a monthly basis, the core CPI rose by 0.3% in February, compared to a 0.4% increase in March.

@Walid Farouk