Gold Prices Witness Unstable Performance Domestically

Gold prices witnessed an unstable performance today, domestically, after the release of the Consumer Price Index (CPI), and the US FED decision of keeping the interest rates unchanged.

Saied Embabi, the executive director of Isagha, said that the gold prices declined by EGP 10 in domestic markets. The gram of 21-karat recorded EGP 3110. While, the gold ounce recorded $2306 in the global markets.

Embabi added that the gram of 24-karat hit EGP 3554, 18-karat recorded EGP 2666, and 14-karat estimated at EGP 2074. The gold pound reached EGP 24880.

The official explained that gold markets slightly witnessed unstable performance, domestically ahead of the waiting for the release of the US economy data, including the interest rates.

However, the feedback of the markets after the release of the US inflation data on Wednesday, and the hints of the US Fed to make one decrease in interest rates this year which will negatively impact gold prices.

The US Bureau of Labor Statistics reported that inflation was unchanged in May for the first time since last June, and the annual rate of inflation fell to 3.3% from 3.4%.

The annual core CPI, which excludes food and energy prices, rose by 0.2% on a monthly basis, and rose by 3.4% on an annual basis.

The US Fed kept interest rates unchanged between 5.25% to 5.50%, for the seventh time in a row, during the Monetary Policy Committee meeting on Wednesday, and expected the interest rate to fall to 5.1% this year.

The US Fed highlighted that the inflation rate increase slowed down by it is still high. It was a slow progress by lowering the inflation rate to 2%.

Contributed by: Rana Atef