Gold prices have remained relatively stable in local markets this Saturday, coinciding with the weekend closure of global exchanges. This comes after a significant surge of 3% last week, propelling gold to an all-time high of $2,508 per ounce. The increase was driven by growing expectations that the U.S. Federal Reserve may soon reduce interest rates.
Saeed Embabi, CEO of the online gold and jewelry trading platform iSagha, reported that gold prices in the local market have held steady compared to Friday's closing levels. The price of 21-karat gold is currently at EGP 3,475 per gram, while the price per ounce ended the week at $2,508, reflecting a weekly gain of $76, or 3%.
Embabi further detailed that 24-karat gold is priced at EGP 3,971 per gram, 18-karat gold at EGP 2,979 per gram, and 14-karat gold at EGP 2,317 per gram. Meanwhile, a gold pound (equivalent to 8 grams of 21-karat gold) is currently valued at EGP 27,800.
On Friday, local gold prices increased by approximately EGP 20 per gram. The price of 21-karat gold began the day at EGP 3,455 and closed at EGP 3,475. Globally, gold rose by $52 per ounce, opening at $2,455 and closing at $2,508.
Embabi noted that the local gold market often operates independently of global trends, not fully reflecting the recent international surge in prices, nor responding to last week’s decline.
Gold saw a 2.2% rise on Friday, breaking its previous record of $2,484 per ounce set on July 17. The latest increase was fueled by weaker-than-expected U.S. housing data, which bolstered expectations of more aggressive interest rate cuts by the Federal Reserve.
Even though U.S. retail sales were strong and weekly jobless claims dropped to their lowest levels in five weeks, 10-year U.S. Treasury yields have remained largely unchanged this week.
Recent reports on the Producer Price Index (PPI) and Consumer Price Index (CPI) for July indicated easing inflation, which could keep the Federal Reserve on course to cut interest rates by 25 basis points next month.
Chicago Federal Reserve President Austan Goolsbee commented that the U.S. economy is not showing signs of accelerating inflation, advising caution among Federal Reserve officials about maintaining restrictive monetary policies for too long.