Gold Prices Rise in Local Markets Amid Global Uncertainty

Gold prices in local markets increased by 0.4% during last week’s trading, ending on Saturday evening, while global gold prices dropped by 0.6% during the week ending Friday, according to a report by the iSagha platform.

Eng. Saeed Embabi, Executive Director of iSagha for online gold and jewelry trading, stated that gold prices in local markets rose by 10 EGP during the past week. The price of a gram of 21-karat gold started the week at 3,690 EGP and closed at 3,700 EGP. Meanwhile, global gold prices fell by $17, with the ounce starting at $2,650 and ending at $2,633.

Embabi noted that gold prices increased by 35 EGP on Sunday in retail stores despite the weekly holiday for raw gold traders and the global market, with 21-karat gold reaching 3,735 EGP per gram.

Gold Prices as of Sunday:

24-karat: 4,269 EGP per gram

18-karat: 3,202 EGP per gram

14-karat: 2,490 EGP per gram

Gold sovereign: 29,880 EGP

Embabi explained that local gold prices rose by 15 EGP on Saturday, opening at 3,685 EGP per gram for 21-karat gold and closing at 3,700 EGP, coinciding with the global market’s holiday.

He highlighted that the rising exchange rate of the dollar limited gold’s losses in local markets despite a drop in global gold prices, driven by uncertainty in global markets and anticipation of U.S. labor market data and the Federal Reserve's upcoming interest rate decision.

Embabi emphasized that local currency movements have a stronger impact on gold prices than global market fluctuations. A 20-piaster shift in the exchange rate typically raises gold prices by 5 EGP, while a $10 change in global gold prices moves local prices by approximately 6 EGP.

He noted that strong U.S. labor market data released on Friday reduced pressure on the Federal Reserve to accelerate interest rate cuts, despite expectations of a 25 basis point reduction at the upcoming Federal Open Market Committee meeting on December 18.

According to the U.S. Bureau of Labor Statistics, 227,000 new jobs were added in November, surpassing market expectations of 214,000. This marked a significant improvement from October's modest gain of 36,000 jobs. The unemployment rate slightly increased from 4.1% to 4.2%, reflecting a robust labor market.