Gold Prices Rise By EGP 80 In Local Markets Over The course of a Week

Gold prices rose by 1.7% in local markets during the week ending Saturday evening, while the ounce rose by 2.6% during the week ending Friday evening, supported by economic uncertainty and geopolitical tensions.

Gold prices rose by EGP 80 in local markets over the past week, with 21-karat gold opening at EGP 4,635, reaching EGP 4,800, and closing at EGP 4,715. Meanwhile, the ounce rose by $84, opening at $3,241, reaching $3,400, and closing at $3,325. The price of a gram of 24-karat gold reached 5,389 Egyptian pounds, while the price of a gram of 18-karat gold reached 4,041 Egyptian pounds. The price of a gram of 14-karat gold reached approximately 3,144 Egyptian pounds, and the gold pound reached approximately 37,720 Egyptian pounds.

Gold prices rose on the global stock exchange due to economic uncertainty and ongoing geopolitical tensions.

The decline of the dollar and US Treasury yields amid geopolitical concerns pushed investors towards gold.

Talks between China and the United States resumed in Geneva on Sunday in an attempt to find solutions to the trade war launched by Donald Trump, after the US president expressed optimism about the progress made on the first day yesterday, Saturday.

Trump described the talks in Geneva as "very good" and considered them "a complete reset negotiated in a friendly but constructive manner."

The two countries sent high-level representatives to Geneva, including US Treasury Secretary Scott Besant, US Trade Representative Jameson Greer, and Chinese Vice Premier He Lifeng. The meeting, held today in Switzerland, comes after the Trump administration announced an agreement with the UK government. Under the plan presented on Thursday, the United States will maintain a 10% import tax on most British goods, but it also agreed to waive some recently imposed import taxes on strategic sectors such as cars and steel.

The end of the US-China trade war will ease geopolitical uncertainty and lower gold prices, as investors shift risk to stocks and bonds.

Meanwhile, India and Pakistan announced a ceasefire agreement on Saturday.

that the escalating India-Pakistan conflict has boosted demand for gold, as economic uncertainty and trade policy risks have led to continued successive increases in gold prices.

The Federal Reserve (the US central bank) confirmed that it is in no rush to cut interest rates, as the US economy remains relatively stable and inflation risks remain elevated.

Markets are anticipating the Fed's first 25 basis point rate cut at its July meeting, with two additional cuts expected by the end of the year. The central bank kept interest rates unchanged at a range of 4.25%-4.50%.

The prevailing optimism regarding gold remains based on its status as the only safe haven amid ongoing political and geopolitical uncertainty, while simultaneously benefiting from increased demand as many countries, particularly in emerging markets, diversify their reserves with gold. Regardless of what happens on the trade front, given the ongoing contradiction and volatility in US policies, it is difficult to imagine this positive demand for diversification dissipating anytime soon.

Meanwhile, the World Gold Council revealed that the People's Bank of China added two tons to its gold reserves in April, the sixth consecutive month. The National Bank of Poland increased its reserves by 12 tons in April, reaching 509 tons, while the Czech National Bank increased its reserves by 2.5 tons in April.

In a related context, markets are awaiting Tuesday's US CPI data, the US Producer Price Index data, and US retail sales data. US weekly unemployment claims, Empire State Manufacturing Survey, Philadelphia Manufacturing Survey, and Federal Reserve Chairman Jerome Powell's remarks in Washington, D.C., on Thursday, and the University of Michigan's preliminary survey of consumer confidence on Friday.