Gold Price Stability Locally, Awaiting the Federal Reserve's Decision

Local gold prices saw a period of relative stability today, Saturday, in sync with the global stock market's weekend break. This follows a weekly gain of 1.6% for the ounce, driven by rising market expectations that the U.S. Federal Reserve will cut interest rates at its upcoming meeting this month, according to a report from the "iSagha" platform for gold and jewelry trading.

According to Saeed Embaby, Executive Director of the "iSagha" online platform, local gold prices were stable today compared to yesterday's closing. The price of a gram of 21-karat gold was 4,895 EGP, while the ounce on the global stock market rose by about $56 over the past week, reaching $3,643 after touching a high of $3,675 on September 9th.

He added that 24-karat gold was priced at 5,594 EGP, 18-karat at 4,196 EGP, and 14-karat at 3,264 EGP. The price of the gold pound remained stable at 39,160 EGP.

Yesterday, Friday, gold prices had risen by about 15 EGP, with the price of a gram of 21-karat gold opening at 4,880 EGP and closing at 4,895 EGP. The ounce increased by about $11, opening at $3,632 and closing at $3,643.

Gold ended the week at a new historic high after disappointing U.S. economic data bolstered expectations for monetary easing. Labor market data showed a sharp slowdown, with over 911,000 jobs lost and unemployment claims rising to their highest level in nearly four years. Additionally, U.S. consumer confidence dropped to 55.4 points from 58.2 in August, while five-year inflation expectations rose to 3.9%.

Monetary Policy Outlook

These indicators have doubled the likelihood of a rate cut at the Fed's September 17th meeting. Markets are pricing in a 91% chance of a 25 basis point cut, with a slim possibility of a larger 50 basis point cut.

Analysts from major investment banks like Deutsche Bank expect the Fed to continue gradually cutting rates over the remaining three meetings of the year, bringing the rate to a range of 3.50% to 3.75% by the start of the new year.

Gold as a Safe Haven

Despite the recent rise in U.S. bond yields, gold remains strongly supported by ongoing economic and geopolitical risks. U.S. President Donald Trump stated that his patience with Russian President Vladimir Putin was "running out," hinting at severe sanctions against Moscow. This, in turn, boosts demand for gold as a safe-haven asset.

The stability of local gold prices does not reflect a global calm but is an extension of a cautious balance awaiting the outcome of the Federal Reserve's decision. With increasing economic pressures and rising geopolitical tensions, gold remains the strongest competitor to the dollar and the primary hedge for investors worldwide. Gold is a low-volatility asset, free from external geopolitical risks.