Gold prices posted a notable increase in both domestic and global markets during midday trading on Tuesday, amid growing expectations that the Federal Reserve is moving toward a rate cut at its December meeting. The shift in sentiment comes after a series of dovish remarks from several monetary policymakers, according to a report by the “Ai Sagha” gold and jewelry trading platform.
Saeed Embabi, the platform’s CEO, said that domestic gold prices have climbed by around 40 EGP compared to Saturday’s closing levels, with 21-karat gold rising to 5,575 EGP per gram, while the international ounce gained $17, reaching $4,150.
The report added that 24-karat gold recorded 6,372 EGP per gram, 18-karat stood at 4,779 EGP, while the gold pound coin stabilized at 44,600 EGP.
Monday’s trading session saw a domestic increase of 85 EGP, as 21-karat gold opened at 5,450 EGP and closed at 5,535 EGP, while the global ounce lost around $68, falling from $4,065 to $4,133.
Weak U.S. Data Lends Further Support to Gold
The latest rise in gold prices has been mainly supported by growing expectations of a rate cut, despite continued difficulty in attracting new buying momentum toward the metal.
Recent U.S. data suggests that wholesale price inflation may not obstruct the Fed’s path toward monetary easing. Producer Prices rose 2.7% year-on-year in September—broadly in line with market expectations—while the core index (excluding food and energy) increased to 2.9%, up from 2.8% in August.
On a monthly basis, headline PPI rose 0.3%, and core PPI climbed 0.1%.
Meanwhile, U.S. retail sales for September grew a weaker-than-expected 0.2%, compared with forecasts of 0.4%, while August’s reading remained unrevised at 0.6%. Total sales between July and September increased 4.5% from the same period last year.
Additionally, an ADP payroll report showed that the private sector shed an average of 13,500 jobs per week over the four weeks ending November 8, underscoring labor-market weakness. Nela Richardson, ADP’s chief economist, said consumer strength remains uncertain heading into the holiday hiring season, which may lead to delayed or reduced hiring.
Dovish Fed Comments Strengthen Cut Expectations
Market expectations for a December rate cut intensified after recent dovish comments by several Federal Reserve officials.
Mary Daly, President of the San Francisco Fed, expressed support for a rate cut next month, warning of growing labor-market softness.
Fed Governor Christopher Waller and New York Fed President John Williams also signaled that there is room for monetary easing soon, noting that inflation no longer poses an urgent threat amid declining employment indicators.
According to CME’s FedWatch tool, markets now price in an 80% probability of a December rate cut. However, the lack of key inflation and labor data—set to be released only after the December 9–10 meeting—keeps the outlook uncertain.
Geopolitical Undercurrents Add Additional Support
On the geopolitical front, markets are monitoring U.S.-led efforts to push forward peace talks between Russia and Ukraine. The Financial Times reported that U.S. Army Minister Dan Driscoll held discussions in Abu Dhabi with both Russian and Ukrainian delegations, following revisions to an initial proposal criticized for leaning in Moscow’s favor, reducing it from 28 to 19 points.
Markets are also awaiting a series of influential U.S. economic releases on Wednesday, including the weekly jobless claims report, durable goods orders, the second estimate of Q3 GDP, the leading economic indicators index, the ISM Chicago business survey, personal income and spending data (including key inflation gauges), new home sales, the Energy Department’s weekly liquid fuels inventory report, and the Federal Reserve’s Beige Book.
Follow the latest news on Google News
