Gold Prices Rise By EGP 1,000 Since The Beginning Of The Year

Gold prices rose in local markets during trading on Wednesday, with the ounce rising on the global stock exchange due to the weak dollar and increased demand for safe havens amid renewed trade tensions between the United States and China. Markets are awaiting statements from the US Federal Reserve Chairman regarding the fate of interest rates.

Gold prices rose in local markets by about EGP 100 during today's trading, compared to yesterday's closing price. The price of a gram of 21-karat gold reached EGP 4,740, while an ounce rose by about $80, reaching $3,310, after touching $3,313, its highest level in history.

A gram of 24-karat gold reached EGP 5,417, a gram of 18-karat gold reached EGP 4,063, while a gram of 14-karat gold reached about EGP 3,160, and the gold pound reached about EGP 37,920. According to the daily report of the "iSaaga" platform, gold prices in local markets rose by EGP 20 during trading on Tuesday. A gram of 21-karat gold opened at EGP 4,620 and closed at EGP 4,640. Meanwhile, an ounce rose by $19, opening at $3,211 and closing at $3,230.

The rise in gold prices in local markets is due to sharp increases in the price of an ounce on the global stock exchange, along with a rise in the dollar exchange rate in the local market.

Renewed trade tensions between the United States and China have prompted investors to turn to gold as a hedge, following President Trump's threat to impose tariffs on pharmaceuticals and the consideration of new tariffs on imports of basic American metals. China is the largest producer of basic metals, and China has also backed out of purchasing American Boeing aircraft.

The escalating uncertainty surrounding tariffs has strengthened the outlook for gold and silver, amid growing fears that the global economy is entering an inflationary recession. He pointed out that the US Federal Reserve's interest rate cut is driving demand for gold, amid growing bets on a 1% rate cut this year, which is strengthening the strength and sustainability of gold's upward trend.

While gold has risen in local markets by about EGP 1,000, or 27%, and by $686, or 26%, this year, supported by tariff disputes, strong central bank buying, expectations of interest rate cuts, and inflows into bullion-backed exchange-traded funds (ETFs). ANZ Bank raised its year-end gold price forecast on Wednesday to $3,600 per ounce, and its forecast for the next six months to $3,500.

In a related context, markets are awaiting today's remarks by Federal Reserve Chairman Jerome Powell, which are expected to provide further clarity on how the central bank will address inflation risks stemming from the trade war in the second half of the year.