Gold Dips Locally, Global Prices Stay Flat

Gold prices remained relatively stable in global markets on Wednesday, while local markets in Egypt experienced a slight decline.

Investors are eagerly awaiting the final decision of the US Federal Reserve for 2024, which is expected to shape the outlook for interest rates and economic policy, according to a report by the gold trading platform, iSagha.

Saeed Embabi, CEO of iSagha, stated that gold prices in Egypt's local markets dropped by EGP 15 during Wednesday’s trading sessions.

This brought the price of 21-karat gold, the most traded in Egypt, to EGP 3,775 per gram.

Meanwhile, prices for other gold categories included:

24-karat: EGP 4,314

18-karat: EGP 3,236

14-karat: EGP 2,517

Gold sovereign coin: EGP 30,200

On the global stage, gold prices remained stable, with the ounce trading at $2,646.

Gold prices on the global market have shown little movement in anticipation of the Federal Open Market Committee's (FOMC) decision, expected later today.

Embabi noted that there are widespread expectations of a 25-basis-point interest rate cut. However, he also pointed to signals that the Federal Reserve might adopt a more hawkish stance going forward, given the current economic data.

Retail Sales Growth: November retail sales surged by 0.7%, surpassing the forecasted 0.5% increase. This followed an upwardly revised 0.5% rise in October.

Inflation Pressure: Rising consumption and inflation rates highlight the resilience of the US economy despite global economic slowdowns.

Service Sector Expansion: Activity in the US services sector exceeded expectations in December, further underscoring strong economic momentum.

Such robust economic data has fueled speculation about the Federal Reserve's return to a stricter monetary policy. A stronger US economy has also led to a sharp rise in US Treasury yields, reducing gold's appeal as a safe-haven asset.

@⁨Walid Farouk⁩