Rumors Of A Reduction In Customs Duties On Cars Push Gold Down

Gold prices fell in local markets during trading on Tuesday, with the ounce declining on the global stock exchange. This decline was due to a decline in demand, as trade war risks diminished amid rumors about the US administration easing customs duties on cars.

Gold prices fell by EGP 30 during trading today, compared to the end of trading last week. The price of a gram of 21-karat gold reached EGP 4,755, while an ounce fell by $38 to $3,310.

Mbappe added that a gram of 24-karat gold reached EGP 5,434, a gram of 18-karat gold reached EGP 4,076, a gram of 14-karat gold reached EGP 3,170, and the gold pound reached EGP 38,040. Gold prices in local markets rose by 10 Egyptian pounds during trading on Monday, with 21-karat gold opening at 4,775 Egyptian pounds and closing at 4,785 Egyptian pounds. The ounce rose by $29, opening at $3,319 and closing at $3,348.

The stability of the dollar exchange rate in local markets has largely kept the local gold price in line with global prices over the past year.

Gold prices on the global stock exchange are declining, amid declining demand for safe havens amid expectations that the US administration will ease auto tariffs, which would ease the global trade war.

Meanwhile, US Treasury Secretary Scott Besant told CNBC on Monday that the United States has temporarily halted trade with China while it seeks to conclude trade deals with between 15 and 17 other countries. He indicated that Beijing is taking the first step to de-escalate the tariff war, according to Reuters. China is responding strongly to the United States, with the People's Daily, the flagship newspaper of the Chinese Communist Party, stating in a commentary Tuesday morning that the United States should stop its irresponsible actions by imposing tariffs.

Despite short-term pressures, gold remains supported by expectations of a more accommodative Federal Reserve policy.

Expectations of a Fed rate cut remain, with futures markets anticipating the first cut in June, with a 1% cut expected through 2025.

Economic data released yesterday revealed that the Dallas Federal Reserve's manufacturing business index fell to -35.8 for April, down from -16.3. This double-digit decline brings the index to levels not seen since the start of the pandemic, according to Reuters.

The Federal Open Market Committee is scheduled to announce its interest rate decision on May 7, while markets await preliminary US first-quarter GDP data on Wednesday and nonfarm payrolls data on Friday, allowing the Fed to assess its policy decision before its next meeting.