Slight Decline in Domestic Gold Prices as 21-Karat Hits EGP 2200

Gold prices in local markets witnessed a slight drop as trading concluded this Monday, echoing a decrease in global gold futures owing to a strengthened U.S. dollar. This change in the dollar's strength comes on the heels of hints from officials at the U.S. Federal Reserve about a potential extension in the timeline for interest rate hikes. However, these shifts remained relatively contained, with investors keenly awaiting the inflation data set to be released later this week.

Hani Milad, the head of the Gold Division at the General Union of Chambers of Commerce, stated that local gold prices decreased by around EGP 10 during today's trading. Specifically, the 21-karat gold gram settled at a rate of EGP 2200, while the gold ounce declined by roughly $9, marking a rate of $1916.

In a more detailed breakdown of prices, Milad provided the following rates:

- 24-karat gold gram is priced at EGP 2514.

- 18-karat gold gram stands at EGP 1886.

- 14-karat gold gram is marked at EGP 1467.

- The gold pound (a traditional Egyptian weight unit for gold) reached EGP 17600.

Shedding light on the market dynamics, Milad explained that the central bank's decision to maintain interest rates is anticipated to bring further stability to prices. This move is likely to have a positive ripple effect on the domestic gold market, promoting relative steadiness. He emphasized that while the central bank's policies moderately influence consumer product prices, gold prices are intricately tied to the monetary policies of the U.S. Federal Reserve, global stock exchanges, and the delicate balance of supply and demand.

Offering a forward-looking perspective, Milad predicted that 2024 could see surges in gold prices. This is attributed to anticipated decisions by the U.S. Federal Reserve, global gold market fluctuations, economic shifts, and political events—all of which play pivotal roles in influencing both global and local gold rates.