Gold Prices Rise by 110 Pounds in Local Markets over the Week

Gold prices in local markets recorded an increase of about 2% during last week’s trading, while the ounce rose globally by 2.1%, supported by a weaker dollar and growing expectations of an interest rate cut by the U.S. Federal Reserve, according to a report from Ai Sagha, a platform for trading gold and jewelry.

Saeed Embabi, the platform’s CEO, stated that the 21-carat gold gram rose by around 110 pounds during the week, opening at 5,345 pounds and closing at 5,455 pounds. On the global level, the ounce increased by about $85, from $4,001 to $4,086.

The report highlighted that 24-carat gold reached 6,234 pounds, 18-carat gold stood at 4,676 pounds, while the gold pound remained at 43,640 pounds.

On Saturday, prices saw a slight decline of 10 pounds, with the 21-carat gold opening at 5,465 pounds and closing at 5,455 pounds, coinciding with the global market’s weekend closure.

Despite the global recovery in gold, the failure to surpass $4,200 per ounce reflects the market’s need for more stability to build momentum that could allow a retest of last month’s record highs. Analysts believe the long-term upward trend remains intact, but markets are skeptical about the Fed’s ability to implement an interest rate cut next month.

Thursday marked the end of the longest government shutdown in U.S. history after 43 days, raising concerns about the reliability of upcoming economic data, particularly missing key inflation and labor market figures. Consequently, economists are proceeding cautiously ahead of the next Fed meeting, amid tough statements from officials who are hesitant to lower rates without clear inflation data.

The CME FedWatch tool shows that the probability of a rate cut in December has fallen to below 50%, down from over 90% a month ago. This sentiment was reflected in gold trading, which ended the week with a 2.1% increase but fell about 3.5% from Thursday’s peak.

Although the government shutdown has ended, it will take time for economic data to be fully updated. Regional manufacturing reports, housing sales, and the consumer confidence index will provide some indications of the U.S. economy’s health. Markets are also awaiting this week’s release of the Fed meeting minutes, jobless claims, and purchasing managers’ data.

Jeffrey Schmid, a member of the Kansas City Federal Reserve, noted that inflation “remains extremely high,” while Stephen Meir affirmed that current data does not support a move toward monetary easing.

The U.S. debt crisis remains another influential factor on markets, especially amid rising concerns about deficit levels and increasing government borrowing. The U.S. president made headlines after pledging $2,000 checks to citizens, funded by tariff revenues, along with proposals for bonuses for air traffic controllers and a 50-year mortgage plan.

The U.S. bond market faces clear pressure, with weak demand in 10- and 30-year bond auctions, while the 50-year mortgage proposal has sparked wide debate due to the doubled interest cost for consumers.

Looking ahead, market uncertainty is expected to continue supporting gold and silver prices.

Additionally, concerns over the Fed’s independence have resurfaced after the U.S. Supreme Court announced it will hear arguments on January 21 regarding Trump’s attempt to remove Lisa Cook from her position.

Despite continuing its easing policy, the Fed remains cautious while inflation remains high. Forecasts suggest a possible interest rate cut next month, supported by weak employment data. Meanwhile, markets are closely watching the fate of Jerome Powell, whose term ends in May, amid speculation over his successor and the potential impact on future monetary policy.