Gold Reverses Loses after US Federal Raises Interest Rates

Gold prices jumped, and reversed some of its losses after the US Federal Reserve raised interest rates by 75 basis points in order to reduce inflation, due to the decline in the dollar, which increased the attractiveness of gold among buyers who hold other currencies.

Said Imbabi, Executive Director of the “i-Sagha” digital platform of gold and jewelry online trading, said that gold prices rose by about EGP 8 during today’s trading in the local markets, as the 21-karat recorded EGP 994, due to the rise in the price of the gold ounce to record $1742.

He added, that 24-Karat recorded EGP 1136, 18-karat recorded EGP 852, 14-karat is sold at EGP 663, and a pound of gold recorded EGP 7952.

He also added that raising interest rates has led to a 15% decline in gold prices since the start of the Russian-Ukrainian war, noting that gold has lost about 5% of its value since January 2022.

Meanwhile, the International Monetary Fund (IMF) cut its global growth forecast again last Tuesday, warning that downside risks from high inflation and the Ukraine war could push the global economy to the brink of recession if left unchecked.

Contributed by Nada Mustafa