Gold prices fell slightly in local markets during trading today, Saturday, coinciding with the global stock exchange's weekly holiday. The ounce ended the week with a 4.5% increase due to the weaker dollar following Trump's escalation of the trade war with the European Union.
Gold prices fell in local markets by about EGP 5 during today's trading, compared to yesterday's closing price. The price of a gram of 21-karat gold reached EGP 4,710, while the price of an ounce of gold closed the week at $3,358, a gain of $154.
Mbappe added that a gram of 24-karat gold reached EGP 5,383, a gram of 18-karat gold reached EGP 4,037, a gram of 14-karat gold reached EGP 3,140, and the gold pound reached EGP 37,680. Gold prices in local markets rose by EGP 85 during trading on Friday, with the price of a gram of 21-karat gold opening at EGP 4,630 and closing at EGP 4,715. Meanwhile, the ounce rose by $63, opening at $3,295 and closing at $3,358.
Gold prices rose in local markets due to the rise in ounces on the global stock market, driven by the weak dollar and Trump's statements that intensified the trade war with the European Union. This was in addition to investor concerns about the US financial situation, which led to increased demand for safe havens.
Before the opening of Wall Street, Trump stated that discussions with the European Union were "not making any progress," threatening to impose 50% tariffs on EU imports on June 1.
The US House of Representatives' approval of a debt-laden $4 trillion budget, with the focus on the Senate vote and inflation data, further boosted gold prices. Gold price forecasts appear optimistic, given the fragile market sentiment toward US assets, fueled by the widening US fiscal deficit, which prompted Moody's to downgrade the US government's debt rating from AAA to AA1.
US building permits fell in April from 1.481 million to 1.422 million, a 4% month-on-month loss. In contrast, new home sales rose 10.9% month-on-month for the same period, from 0.67 million to 0.743 million, according to US Census Bureau data.
St. Louis Federal Reserve Bank President Matthew Musallem stated that businesses are struggling to manage uncertainty surrounding supply chains, inventory, and inflation. Meanwhile, Chicago Federal Reserve Bank President Goolsbee said the Fed must wait for the cloud to clear, and that the threshold for action is high until that happens. In a related development, markets are awaiting the release of durable goods orders data next week, the minutes of the Federal Reserve's last meeting, the second estimate of GDP, and the Fed's preferred inflation measure, the core personal consumption expenditures price index.
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