The performance of gold was somehow limited, and the changes of prices slightly changed due to the US Federal Reserves’ anticipated decisions about inflation and interest rates.
Saied Embabi, the CEO of Isagha platform, said that gold ounces prices fell last week in world exchange markets by 0.7%, estimated by $ 6. In addition, it was about to lose 1.5% which could be the biggest weekly decline since last May due to the rise of the US dollar, in addition to the restrictions imposed by the central banks to control inflation. The US Federal Reserve increased the rates of interest by 75 points to record the biggest rise in rates of interest since 1994.
He added that gold ounces reached $1841 at the end of the week, comparing to $1847
Therefore, Embabi pointed out that markets are highly anticipated to see the investors’ directions in near future, especially in the field of bonds, or dollars which are known as safe investing tools.
In the same context, banks expect that the prices of gold ounces could surpass $ 2100 in case of the rise of demand in developing markets, and the direction of central banks to buy more gold in the light of the slow growth of the US economy.
The jump in the rates of inflation and uncertainty in the economy is the most supportive factors for the gold’s rise, however, high-interest rates could raise the expanses of opportunity cost. However, the US Reserve targets restricting inflation without any further harm.
In the same context, banks expect that the prices of gold ounces could surpass $ 2100 in case of the rise of demand in developing markets, and the direction of central banks to buy more gold in the light of the slow growth of the US economy until 2023.
He explained that 21-karat jumped by EGP 6 to record on Saturday 1005, compared to EGP 999 last Monday.
Furthermore, Embabi revealed that 24-Karat reached EGP 1149, while 18-karat registered EGP 862. Finally, the gold pound was sold at EGP 8040.
Finally, Embabi concluded that the demand for gold in the local markets is still weak due to the anticipated decisions by the Central Bank of Egypt regarding interest rates, and the fall of prices which negatively impacted the sales of gold.
Contributed by Rana Atef