Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Blur scene, Markets' Anticipation of US Federal Reserve Chairman's Statement Pushed Up Gold Prices

Gold Prices, gold

Mon 06 Feb 2023 | 04:00 PM
Walid Farouk

Gold prices rose in the local markets by 15 pounds at the beginning of trading today, Monday, as a result of the rise in the price of an ounce on the global stock exchanges.

However, the strength of the US dollar and fears that the US Federal Reserve will continue to raise interest rates at a faster pace limited gold’s gains.

The global markets are witnessing a state of uncertainty, amid anticipation of the statement of “Jerome Powell”, the US Federal Reserve Chairman, tomorrow, Tuesday, and the speeches of the US Federal Reserve members on Wednesday, to obtain indications about the path of monetary tightening during the coming period.

It is worth noting that gold prices fell in the local markets by 45 pounds, or 2.6% during last week’s trading, while an ounce fell in the global stock exchange by $63, or 3.3%, due to the rise of the dollar and the rise in US bond yields.

Lower prices of gold last week came after the release of very positive US employment data for January, which boosted the chances of the US Federal Reserve continuing to raise interest rates during the next March meeting.

Last week's dealings witnessed the US Federal Reserve's decision to increase interest rates by 25 basis points for the eighth time in a rowز

Also, both the European Central Bank and the Bank of England raised interest rates by 50 basis points, while the Monetary Policy Committee of the Central Bank of Egypt decided to fix interest rates.

While Saeed Imbaby, executive director of the “iSagha” platform for gold and jewelry trading via the Internet, said that gold prices rose by 15 pounds in the local markets during today’s trading, so that a gram of 21 karat gold recorded the level of 1720 pounds, and an ounce on the global stock exchange recorded the level of 1878 dollars.

Imbaby explained that a gram of 24 karat gold recorded 1966 pounds, a gram of 18 karat gold recorded about 1474 pounds, and a gram of 14 karat gold recorded about 1147 pounds, while a gold pound recorded about 13760 pounds.

Translated by Ahmed Moamar