Gold prices jumped, domestically, on Wednesday, following an increase in the prices of the ounce, internationally. This performance came as the USD fell, an increase in the demand of the yellow gold due to the latest escalations in the Middle East, in addition to the anticipation of the US inflation data release.
Saied Embabi, the Executive Director of Isagha platform, said that gold increased by EGP 5. The gram of 21-karat recorded EGP 3110, on the other hand, the gold ounce increased by $15 to hit $2370.
Embabi added that the gram of 24-karat hit EGP 3554, and 18-karat registered at EGP 2666. The gold pound hit EGP 24880.
Yesterday, the US Department of Labor revealed that the Producer Price Index increased by 2.2% on annual basis, the Core Producer Price Index jumped by 2.4% on annual basis, and 0.5% on monthly basis.
US Federal Reserve Chairman Jerome Powell said that the inflation dropped slower than expected, and the latest released data showed the need to delay lowering the interest rates, however, there is no expectation in increasing the interest rates.
However, he pointed out that the inflation is still high, and the US Fed still has a lot of work to do.
Embabi reflected that the increasing dmand on gold, especially from the central banks. But, Powell's intention to keep the interest rates high could led to a drop in gold prices in short term.
According to the World Gold Council, said that the demand of gold increased by 3% in the first quarter of 2024 to reach 1238 tons, which is the strongest since 2016.
In the same context, the markets are anticipating the US Consumer Price for April which could give a hint about the date of lowering interest rates.
Embabi revealed that US inflation data could drive the US Fed to take more restricitions in case it recorded any increases.
According to Reuters, inflation rate is expected to see an increase by 0.3% on monthly basis, lower than last month by 0.4%
Contributed by: Rana Atef
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