Gold Rises Again Amid Growing Expectations of US Interest Rate Cuts

Gold prices rose in local markets during trading on Thursday, with the ounce rising on the global stock exchange, due to growing expectations of a US Federal Reserve interest rate cut, amid a slowing labor market and weak consumer spending.

Gold prices rose by EGP 60 during today's trading, compared to yesterday's closing price. The price of 21-karat gold reached EGP 4,825 per gram, while the price of an ounce rose by $49 to $3,337.

Mbappe added that 24-karat gold reached EGP 5,514 per gram, 18-karat gold reached EGP 4,136 per gram, while 14-karat gold reached EGP 3,217 per gram, and the gold pound reached EGP 38,600 per gram. Gold prices in local markets fell by EGP 125 during trading on Wednesday. A gram of 21-karat gold opened at EGP 4,890 and closed at EGP 4,765. Meanwhile, an ounce fell by $93, opening at $3,381 and closing at $3,288.

Gold prices in local markets are experiencing sharp price fluctuations during the current period, in line with fluctuations in global markets due to the uncertainty and ambiguity caused by the conflicting economic decisions of the US administration.

The weakness of the US dollar and the possibility of a Federal Reserve interest rate cut have contributed to easing the downward pressure on gold, which has rebounded amid the ongoing uncertainty. US President Donald Trump issued further comments Wednesday evening, indicating that China could impose new tariffs in the next "two or three weeks," while countries currently in the negotiating phase could impose reciprocal tariffs if negotiations don't go his way, according to Bloomberg.

The US dollar index fell from recent highs as Treasury Secretary Scott Besant denied reports of unilateral tariff reductions, underscoring continued uncertainty surrounding the US-China trade dialogue.

Trump's softer comments on China and the Federal Reserve have eased market tensions. Despite the decline, gold is still up more than 25% since the beginning of the year, supported by ongoing volatility, shifting US policies, and strong demand from exchange-traded funds and central banks.

The Federal Reserve's Beige Book, released Wednesday, pointed to a slowing labor market and weak consumer spending.

The report noted that "growth is modest and uneven," suggesting that conditions may soon call for a policy response. The preliminary reading of the Standard & Poor's Global Purchasing Managers' Index (PMI) for April showed mixed results, with the manufacturing sector rising slightly while the services sector slowed, increasing investor caution.

The Swiss National Bank (SNB) reported that its gold holdings enabled it to post a profit in the first quarter. The central bank said in a statement Thursday that it gained 6.7 billion Swiss francs (CHF) from January to March, according to Bloomberg.

Shanghai gold futures followed the recent selloff, recording their biggest daily decline since 2013. Chinese investors rushed to take profits on the assumption that a trade agreement between China and the United States was imminent after US President Donald Trump's remarks on Tuesday and Wednesday.

In a related development, markets are awaiting unemployment claims and durable goods orders to determine the US Federal Reserve's monetary policy direction.