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Gold Prices Surge 2.7% Globally Over the Week


Gold Prices

Sat 06 Jul 2024 | 09:27 PM
Waleed Farouk

Gold prices have risen in local markets today, coinciding with the global market's weekend closure. On Friday, the ounce of gold closed the week with a 2.7% increase, amounting to $63. This surge was driven by positive U.S. non-farm payroll data and growing expectations of a rate cut by the Federal Reserve.

According to Saeed Embabi, CEO of the online gold and jewelry trading platform iSagha, gold prices in local markets increased by EGP 20 today compared to yesterday's close, with 21-karat gold now priced at EGP 3,240 per gram.

Embabi further noted that 24-karat gold is now priced at EGP 3,703 per gram, 18-karat gold at EGP 2,777 per gram, and 14-karat gold at EGP 2,100 per gram. The gold pound is now valued at EGP 25,920.

On Friday, local gold prices rose by EGP 45, with 21-karat gold opening at EGP 3,175 per gram and closing at EGP 3,220 per gram. The ounce of gold saw a $33 increase, opening at $2,356 and closing at $2,389.

Embabi pointed out that the gap between local and global prices was around EGP 10 today, despite the local banks and global market being closed for the weekend. He added that current price movements are driven by uncertain supply and demand factors within the market.

According to the Bureau of Labor Statistics, U.S. non-farm payrolls increased by 206,000 jobs last month, surpassing market expectations of 191,000 jobs. However, the unemployment rate rose to 4.1% from 4.0% in May, against economists' predictions of it remaining unchanged.

The report also noted that revisions to April and May figures revealed employment was 111,000 jobs lower than previously reported. Despite this, inflation pressures remain contained, with average hourly earnings increasing by 10 cents, or 0.3%, to $35.00 last month, aligning with expectations. Over the past year, average hourly earnings have risen by 3.9%.

On Wednesday, the Federal Open Market Committee released minutes from its June meeting, revealing that most participants viewed current policies as restrictive but left room for potential rate hikes. Policymakers acknowledged the economy's slowdown and indicated they might respond to unexpected economic weaknesses.