Gold prices declined in local markets during Thursday's trading, with the ounce declining on the global stock exchange.
The drop was affected by the dollar rise amid fading bets on further interest rate cuts by the US Federal Reserve, following the release of economic data that showed an improvement in the US economy.
Said Imbabi, Executive Director of the “i-Sagha”, said that gold prices fell in local markets by EGP 8 during the transactions compared to the end of yesterday’s trading, in which the gram of 21-karat gold recorded EGP 3580 and an ounce on the global stock exchange declined by $8 to record $2645.
He added that the 24-karat gold reached EGP 4091, 18-karat registered EGP 3069, 14-karat gold sold at EGP 2387, and the gold pound hit EGP 28640.
On the other hand, gold prices declined in the local markets by EGP 3 during yesterday's trading.
The 21-karat opened trading at EGP 3585 and closed at EGP 3588. Meanwhile, the ounce rose on the global stock market by $1, with transactions beginning at $2658 and concluding at $2659.
Imbabi explained that gold prices on the global stock exchange are still receiving support from two main factors: safe haven flows into gold due to fears of an escalation of the conflict in the Middle East and the general trend towards a decline in global interest rates, despite the new caution adopted by the US Federal Reserve regarding further interest rate cuts.
The decline in market bets comes after the release of stronger-than-expected US jobs data, indicating that the US economy is still strong, which in turn enabled the dollar to recover after its sharp decline in August, which led to further pressure on gold.
Opinions vary within the markets about the chances of the Federal Reserve cutting interest rates by another 50 basis points at its November meeting, but Federal Reserve Chair Jerome Powell's cautionary statements last Monday led to reducing these bets.
Meanwhile, some international banks raised their year-end targets for gold between $2,900 and $3,000, including Goldman Sachs and UBS.
In a related context, markets are awaiting the US non-farm employment data, scheduled to be released on Friday.
It will highlight the strength of the US labor market, which is a decisive factor in determining the US Federal Reserve’s monetary policy directions at its November meeting.