Gold Prices Rise by EGP 60 in Local Markets Over the Week

Gold prices in local markets rose by approximately 1.3% during the week ending Saturday evening, while global gold prices increased by 0.6% during the week ending last Friday. The rise was driven by higher demand and diminished expectations of a U.S. Federal Reserve interest rate cut.

Local gold prices increased by EGP 60 last week. The price of 21-karat gold began the week at EGP 4600 per gram, peaked at EGP 4720, and closed at EGP 4660. Meanwhile, the global ounce rose by $20, opening at $3290, reaching $3403, and closing at $3310.

The price of 24-karat gold recorded EGP 5326 per gram, while 18-karat gold reached EGP 3994, and 14-karat gold stood at approximately EGP 3107. The gold pound was priced at around EGP 37280.

Gold prices witnessed limited fluctuations throughout the week, moving between $3300 and $3400 per ounce before stabilizing near $3310. Despite hitting a weekly high at $3403, decreased demand and increased profit-taking caused prices to pull back.

Markets saw a decline in demand and a rise in profit-taking activity, especially as bets on a Federal Reserve interest rate cut receded after strong U.S. non-farm payroll data.

U.S. employment data showed an addition of 139,000 jobs in May, exceeding expectations, while the unemployment rate held steady at 4.2% and wages rose — reducing the likelihood of a near-term Fed rate cut.

Upcoming U.S. inflation data, due this week, may determine the Federal Reserve’s stance on interest rates. A drop in inflation would likely boost gold, especially with ongoing geopolitical tensions in the Middle East and Ukraine, alongside a weakening U.S. dollar.

The Federal Reserve’s Open Market Committee is expected to announce its decision regarding interest rates on June 17 and 18.

Some analysts believe that any sudden political de-escalation or the signing of trade agreements may pressure gold prices downward.

However, gold continues to enjoy strong investment demand, fueled by central bank purchases and investors’ desire for hedging, according to analyses from leading financial experts.

Market attention this week will focus on key U.S. inflation indicators, starting with the Consumer Price Index (CPI) on Wednesday, followed by the Producer Price Index (PPI) and weekly jobless claims on Thursday, and the University of Michigan’s Consumer Sentiment Index on Friday.