Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Gold Prices See Slight Decline as Markets Await Federal Reserve Chair's Speech

Gold Prices

Wed 03 Apr 2024 | 11:44 PM
Waleed Farouk

On Wednesday, local markets saw a slight decrease in gold prices, a trend mirrored on the global stage as prices momentarily dipped after reaching record levels.

This fluctuation is attributed to an upsurge in demand and growing geopolitical tensions in the Middle East, in addition to heightened acquisitions by both individuals and central banks aiming to diversify reserves against the weakening dollar.

Saeed Embabi, CEO of "iSagha," an online platform for gold and jewelry trading, reported a slight drop of about 5 EGP in local gold prices from the previous day's closing, with a gram of 24-karat gold now priced at 3,537 EGP. The price for an ounce of gold on the global market also decreased by around $5, settling at $2,275, after briefly soaring to a historic peak of $2,280 in spot transactions and $2,300 in futures contracts.

Embabi emphasized the significant impact of global gold price fluctuations and the local dollar exchange rate on the domestic market's gold prices, alongside the dynamics of supply and demand. He noted the current market's uncertainty regarding gold price trajectories, suggesting that despite recent highs, prices could retract to below $2,000 per ounce, influenced by the U.S. Federal Reserve's monetary policies.

The stability observed in the local gold market is mainly due to a decrease in demand and a stable dollar exchange rate, according to Embabi.

Market participants are now keenly awaiting an upcoming speech by Jerome Powell, the U.S. Federal Reserve Chair. Insights from Powell, along with forthcoming statements from other Fed officials expected this Friday, are eagerly anticipated for their potential to shed light on the direction of future interest rates.