Gold prices declined slightly in local markets during trading today, Saturday, coinciding with the global stock exchange's weekly holiday. The ounce fell 2.3% at the end of the week, due to a stronger dollar and a potential US-China rapprochement to resolve the trade dispute between the world's two largest economies.
Gold prices fell by EGP 5 during today's trading, compared to yesterday's close. The price of a gram of 21-karat gold reached EGP 4,635, while the price of an ounce of gold closed the week at $3,241, a decline of $78.
The price of a gram of 24-karat gold reached EGP 5,297, while the price of a gram of 18-karat gold reached EGP 3,973. The price of a gram of 14-karat gold reached EGP 3,090, and the price of a pound of gold reached EGP 37,080. Gold prices continued to decline in local markets, with the ounce declining on the global stock market due to profit-taking, as trade tensions between the United States and China eased and a strong report on the US labor market was released.
The employment data coincided with signs of potential progress in US-China trade negotiations, as China recently revealed that it is considering a US proposal for trade talks between the two countries.
The development in the negotiations represents the first indication that the world's two largest economies may be taking steps toward resolving their trade dispute, which has worried global markets.
The US Department of Labor reported on Friday that the economy created 177,000 jobs last month, down from the downwardly revised 185,000 in March but exceeding estimates of 130,000. Earlier in the week, the US jobs report indicated that US companies were hiring fewer jobs than the nonfarm payrolls report revealed.
The unemployment rate remained unchanged at 4.2% last month, and wage growth was relatively stable. Economic data last week also showed stabilizing inflation pressures. Some analysts have stated that the economic data, taken together, may push the US Federal Reserve to cut interest rates at its meeting on Wednesday, May 7. The central bank has maintained a strong neutral stance so far this year, making clear it is in no rush to cut interest rates, as the labor market remains strong and inflation risks remain elevated.
Gold prices have fallen more than 7% from their April 22 high of $3,500 per ounce; however, prices are still up about 24% since the beginning of the year. Despite selling pressure, gold still has a strong chance of continuing its upward trend, given the erratic Trump administration and a slowing US economy.
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