Local Gold Prices Gain Nearly 17.3% in 2024

Gold prices declined in local markets during Monday's trading, with the ounce declining on the global stock exchange.

The drop comes amid market anticipating the potential impact of President-elect Donald Trump's return to office on the US Federal Reserve's expectations during the coming year.

Said Imbabi, Executive Director of the “i-Sagha”, said that gold prices fell in local markets by EGP 10 during the transactions compared to the end of yesterday’s trading, in which the gram of 21-karat gold recorded EGP 3725.

He added that the 24-karat gold reached EGP 4257, 18-karat registered EGP 3139, 14-karat gold sold at EGP 3139, and the gold pound hit EGP 29800.

On the other hand, gold prices declined in the local markets by EGP 35 during yesterday's trading.

The 21-karat opened trading at EGP 3770 and closed at EGP 3735. Meanwhile, the ounce declined on the global stock market by $1, with transactions beginning at $2622 and concluding at $2621.

Imbabi explained that local gold markets are experiencing a state of calm in demand during the New Year's holiday season, as gold prices are heading towards achieving gains of 17.3% in 2024.

The price of a gram of 21-karat gold opened the year's trading at EGP 3175 and touched EGP 4200 at the end of January trading.

He added that global markets are awaiting the impact of Trump's return to the presidency in the United States, which will undoubtedly lead to sharp economic changes within the markets.

Imbabi pointed out that the possibility of further interest rate cuts by the US Federal Reserve enhances the strength of gold, in addition to the continued increasing geopolitical risks resulting from the Russian-Ukrainian conflict and the ongoing tensions in the Middle East.

Meanwhile, gold prices on the global stock exchange are heading to achieve gains of 27% by the end of the year's trading, recording its best annual performance since 2010.

The gold prices rose to their highest levels ever at $3800 per ounce on October 31, as gold prices closed last year at $2062, due to geopolitical risks, acquisitions by central banks, and the interest rate cut cycle by the US Federal Reserve.

Last week, the Federal Reserve signaled a more cautious outlook for additional interest rate cuts in 2025, signaling a shift in monetary policy stance, including potential tariffs, deregulation, and tax changes, as Trump prepares to return to the White House in January.

Markets are awaiting the release of the U.S. pending home sales report on Monday, the weekly U.S. jobless claims on Thursday, and the Manufacturing Purchasing Managers' Index (PMI) report on Friday.