Gold prices in local markets witnessed a 0.6% increase during last week's trading, coinciding with a 2.2% rise in the global ounce. This comes amid a weakening US dollar and growing market bets on easing geopolitical tensions and potential US interest rate cuts, according to a report by the "Marsad Al Dahab" for Economic Studies.
Domestic Price Breakdown
The report noted that 21-karat gold rose by approximately 45 pounds over the week. It opened at 6,960 pounds and closed at 7,005 pounds. Other denominations recorded the following:
Gold Sovereign (8g): ~56,040 EGP
24-Karat Gold: ~8,006 EGP per gram
18-Karat Gold: ~6,004 EGP per gram
Global Market Trends
On the international front, the price of an ounce surged by $102 in a single week, climbing from $4,614 to $4,716, according to World Gold Council data.
The report explained that gold is currently influenced by several intertwined factors:
US Monetary Policy: Expectations regarding interest rate adjustments.
Currency & Energy: Fluctuations in the US dollar and energy prices.
Geopolitical Tensions: Ongoing instability in the Gulf and Middle East regions.
These factors continue to support demand for the precious metal despite the volatility seen in global markets. Furthermore, the decline in oil prices and the dollar has bolstered market expectations for a US rate cut, providing additional momentum for gold amid global uncertainty.
Central Bank Activity
The "Marsad Al Dahab" emphasized that global central banks remain a primary long-term support factor for the gold market. Although there was a net sale of 30 tons in March—driven largely by significant sales from Turkey and Russia—several nations, including China, Poland, Uzbekistan, and Kazakhstan, continued to strengthen their gold reserves.
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