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Editor in Chief Mohamed Wadie

Relative stability in gold prices amid increasing bets on reducing US interest rates


Gold Service

Thu 04 Jul 2024 | 06:59 PM
Waleed Farouk

Gold prices stabilized in domestic markets, on Thursday, after a slightly stable performance for gold ounce, internationally. The latest performance of gold came after yesterday's jump in gold prices ahead with the rising odds about the US Fed's intention to decrease interest rates.

Saied Embabi, the executive director of the Isagha platform, said that gold prices stabilized. The gram of 21-karat hit EGP 3175, while the ounce hit $2356.

In the same context, the gram of 24-karat recorded EGP 3629, 18-karat recorded EGP 2722, and 14-karat reached EGP 2117. The gold pound recorded EGP 25400.

Embabi highlighted that gold prices increased, internationally, after the release of US labor reports which revealed a slowdown in the US economy. The reports said that there was an increase in the submitted initial jobless claims. This raised more concerns over the weakness of the market.

He added that the latest released data contributed to supporting the speculations about the US Fed's intention to end the restricted monetary policies and start decreasing the interest rates.

The Federal Open Market Committee meeting statement revealed that the majority of the decision-makers agreed upon stabilizing the prices without setting interest rates. Also, the US Fed admitted that the US economy is slowing down, but they need to make more observations before decreasing the interest rates.

However, they believe that more positive data would help them to trust that the inflation rate will be re-directed towards 2% before decreasing the interest rates.

The markets are still waiting for more data to be released on Friday.

Contributed by: Rana Atef