Gold Prices Increase, 21-Karat at EGP 3595

Gold prices saw a slight increase in local markets during Tuesday's trading, while a strong dollar limited gains in the global market, amidst rising geopolitical tensions and fears of an expanding conflict in the Middle East.

Saeed Embabi, CEO of the “iSagha” platform said that gold prices witnessed an increase by EGP 5 in the local markets during today’s trading, as a gram of 21 karat gold recorded EGP 3595, while an ounce declined to $2656.

He added that a gram of 24 karat gold recorded EGP 4109, a gram of 18 karat gold recorded about EGP 3081, and a pound of gold recorded about EGP 28760.

According to the daily report from iSagha, local gold prices dropped by 10 EGP during Monday's trading, as 21-carat gold opened at 3,600 EGP per gram and closed at 3,590 EGP. Meanwhile, global gold prices fell by 5 USD, with the ounce opening at 2,657 USD and closing at 2,652 USD.

Embabi noted that the main driver for the rise in gold prices is increasing geopolitical tensions and fears of a broader conflict in the Middle East, but the strength of the dollar has limited these gains.

The U.S. dollar reached its highest levels since August 8 on Monday, amid growing speculation that the U.S. Federal Reserve will adopt a less aggressive monetary easing policy and expectations of a 25 basis point interest rate cut in the upcoming November meeting.

Gold reached a record high of 2,686 USD on September 27, but it has since given up some of those gains due to the dollar's rise and lowered expectations for a larger rate cut by the U.S. Federal Reserve.

Minneapolis Federal Reserve President Neel Kashkari stated on Monday that monetary policy remains tight and indicated that further rate cuts are likely appropriate, with improvements in the labor market and inflation nearing the Federal Reserve’s 2% target.

Federal Reserve Governor Christopher Waller noted that the economy is strong and may not slow down as desired, cautioning that the central bank should proceed more cautiously with rate cuts compared to the September meeting.