Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Global Gold Prices See 4.2% Sharp Decline Over Last Week

Gold Service

Sat 30 Sep 2023 | 06:16 PM
Walid Farouk

Global gold prices experienced a significant tumble over the last week, falling by 4.2% or approximately 77 dollars. The dip is attributed to the strengthening of the US dollar, following the publication of economic data signaling a stable trajectory for the US economy. Such stability is fostering the enduring implementation of the US Federal Reserve's strict monetary policy.

Fady Kamel, CEO of Egypt Gold for Trading and Marketing of Gold and Silver, illuminated that gold prices have demonstrated stability as trading embarked this Saturday. This comes during the weekly recess for the global exchange, with the price of 21-karat gold per gram leveling at 2,175 Egyptian pounds and the ounce in the international market stabilizing at 1,848 dollars.

Moreover, Kamel delineated that the price per gram for 24-karat gold reached approximately 2,486 Egyptian pounds, while 18-carat was about 1,864 Egyptian pounds. Additionally, 14-karat gold per gram was listed at around 1,450 Egyptian pounds, and a gold pound was tabulated at 17,400 Egyptian pounds.

A contextual addition, gold prices in the domestic market witnessed an escalation by 15 Egyptian pounds during transactions on Wednesday. The 21-karat gold per gram initiated trading at a rate of 2,190 Egyptian pounds, concluding the transactions at a slightly lower 2,175 Egyptian pounds. Conversely, the ounce in the global exchange depreciated by an estimated 14 dollars, opening transactions at 1,862 dollars and concluding them at 1,848 dollars.

Pertinent economic data unveiled a deceleration in the annual core Personal Consumption Expenditures (PCE) Price Index, registering approximately 3.9%, consistent with expert forecasts. It recorded 4.2% in a preceding reading, but was later amended to 3.4%. Meanwhile, the core PCE Price Index on a monthly basis recorded 0.1%, while the primary PCE Price Index on an annual basis registered around 3.5%, aligning with projections, and amounted to about 0.4% on a monthly basis. Predictions were stationed at 0.5%, with the preceding reading at 0.2%.

Gold prices receded as transactions wound down on Friday, post the revelation that the University of Michigan's Consumer Confidence Index registered about 68.1 in September, whereas economists projected a reading of 67.7 points.

The Michigan inflation expectations index for September documented 3.2%, with projections pointing towards a 3.1% increment. The former reading was registered at 3.5%. Furthermore, the survey unveiled that inflation expectations for the imminent five years were 2.8%, with forecasts indicating 2.7%. Concurrently, the Michigan index for consumer expectations recorded 66 points, whereas expectations were situated at 66.3 points, with the former reading at 65.5 points.