Gold prices in local markets edged higher midday Wednesday, while the ounce remained stable on the global exchange.
Markets are eagerly awaiting the release of US jobs data for clearer signals on the Federal Reserve's decision regarding its tight monetary policy.
Saeed Embaby, the CEO of "iSagha" platform for online gold and jewelry trading, stated that gold prices rose by EGP 10 in local markets during today's trading session compared to yesterday's closing.
The price of 21-karat gold reached EGP 3110, while the ounce remained at the level of $2334 on the global exchange
Embaby added that the price of 24-karat reached 3554 EGP, 18-carat gold recorded EGP 2666, while 14-karat at around EGP 2074, and gold per pound recorded nearly EGP 24880.
Yesterday, gold prices slightly decreased by EGP 5 in local markets, opening at EGP 3150 per gram of 21-karat, touching a low of EGP 3095, and closing at EGP 3100.
Meanwhile, gold prices dropped by $12 on the global exchange, opening at $2347 per ounce, reaching a high of $2455, and closing at $2335.
Embaby noted that gold prices gained momentum from the weakness of the US dollar and the increasing acceptance of the Federal Reserve's potential rate cuts later this year.
Despite a modest recovery in the US dollar from its lowest level in over two months, which it touched on Tuesday, exerting pressure leading to a decline in gold prices, weak US data mitigated the losses.
Embaby highlighted that geopolitical risks arising from ongoing conflicts in the Middle East continue to influence gold prices as a safe haven.
Later today, markets await the release of private sector employment report and the purchasing managers' index for the service sector.
The primary focus remains on the monthly official employment report, known as the nonfarm payrolls report, which will determine movements in gold and the dollar.
Employment data is a strong indicator of the health of the US economy.
A decrease in available jobs indicates employers are more defensive in their spending, hiring, and expansion, and vice versa. More jobs signal a strong economy, which the Federal Reserve currently does not favor.
Gold prices are expected to rise if the data shows weakness in the job market, as it reinforces expectations of the Federal Reserve's accelerated rate cuts, pushing investors towards gold as a safe haven during times of declining interest rates.