Gold Prices Decline Slightly as Rate Cut Hopes Ease for 2024

Gold prices declined in local markets during Tuesday's trading and the ounce on the global stock market fell.

This decrease was impacted by the US Federal Reserve’s decision to maintain interest rates at their current rates, amid a decrease in expectations by reducing interest this year.

Said Imbabi, Executive Director of the “i-Sagha”, said that gold prices fell in local markets by EGP 20 during the transactions compared to the end of yesterday’s trading, in which the gram of 21-karat gold recorded EGP 3070 and an ounce on the global stock exchange declined by $14 to record $2301.

He added that the 24-karat gold reached EGP 3509, 18-karat registered EGP 2632, 14-karat gold sold at EGP 2047, and the gold pound hit EGP 24560.

On the other hand, gold prices rose in the local markets by EGP 35 during yesterday's trading.

The 21-karat opened trading at EGP 3055, touched EGP 3100, and closed at EGP 3090. Meanwhile, the ounce rose on the global stock market by $52, with transactions beginning at $2285, touching EGP 2324, and concluding at $2315.

In a related context, gold prices in local markets declined by EGP35 or 1.1 % in April, during which the 21-karat opened trading at EGP 3090, touched EGP 3305, and closed at EGP 3055.

On April 12, gold prices rose on the global stock market by $2431 or 2.3% and concluded at $2285.

Gold prices in local markets also decreased by EGP120 or 3.8 % from the beginning of the year to the end of April 2024 transactions.

The 21-karat opened trading at EGP 3175, touched EGP 4,000, and closed at EGP 3055.

Meanwhile, the ounce rose on the global stock market by $223 or 11%, with transactions beginning at $2062, touching EGP 2413, and concluding at $2285.

Imbabi pointed out that the US Federal Reserve’s decision to maintain interest rates at their current rates will limit the investors ’orientation to the debt tools in emerging markets, including Egypt.

Jerome Powell, Chairman of the US Federal Reserve, before Congress, which will last for two days starting Wednesday.

In addition to the anticipation of the release of US jobs data next Friday, to obtain clearer indications about the directions of the US Federal Reserve’s monetary policy.

He added that the dollar in the local market may resist the decline in the coming period with the decreasing volume of hot money.

The US federal decided to maintain interest rates for the sixth time in a row in a meeting on Wednesday while keeping interest rates at the level of 5.25 and 5.5 %.

In a statement on Tuesday, Jerome Powell, Chairman of the US Federal Reserve, said that the reduce of interest rates in the near future is unlikely as it will take inflation to 2%, which will take some time.

He added that the data will play a major role in determining the timing of any interest rates.