Gold prices in local markets fell by 2.9% during trading last week, ending Saturday evening. The ounce fell by 2.3% during trading last Friday evening, due to the rising dollar and potential trade convergence between the United States and China, which pressured demand.
Gold prices in local markets fell by EGP 140 during trading last week. A gram of 21-karat gold opened at EGP 4,775 and closed at EGP 4,635. An ounce fell by $78, opening at $3,319 and closing at $3,241.
A gram of 24-karat gold reached EGP 5,297, a gram of 18-karat gold reached EGP 3,973, a gram of 14-karat gold reached EGP 3,090, and a gram of gold reached EGP 37,080. Gold prices in local markets have fallen by about EGP 365 since reaching their highest level of EGP 5,000 on April 22nd, which confirms the need to avoid buying gold during successive and sudden price increases to avoid incurring losses.
He added that the appropriate times to buy and sell are when the markets are stable.
Markets have witnessed a noticeable improvement in sales with the rise in prices over the past month, amid concerns among citizens about not "missing the opportunity," which would expose them to losses or waiting for a period of time until prices return to their previous levels.
He pointed out that gold prices declined on the global stock exchange due to profit-taking and the easing of trade tensions between the United States and China.
US employment data released last Friday reinforced profit-taking, especially with signs of potential progress in trade negotiations between the United States and China, as the latter revealed that it is studying a US proposal to hold trade talks between the two countries.
The progress of the negotiations represents the first indication that the world's two largest economies may be taking steps toward resolving their trade dispute, which has raised concerns among global markets. While the US Department of Labor reported that the economy created 177,000 jobs last month, down from the downwardly revised 185,000 in March, but above estimates of 130,000, the US jobs report earlier in the week 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, could 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 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, and despite selling pressure, gold still has a strong chance of continuing its upward trend, given the erratic Trump administration and the slowing US economy.
Follow the latest news on Google News
