Gold prices declined in local markets during trading on Saturday, coinciding with the global stock market's weekly holiday, after achieving weekly gains of 2.6% per ounce, supported by economic uncertainty and geopolitical tensions.
Gold prices in local markets fell by about EGP 10 compared to yesterday's closing price, with the price of 21-karat gold reaching EGP 4,720 per gram, while the price of an ounce closed the week at $3,325, an increase of $84.
24-karat gold reached EGP 5,394 per gram, 18-karat gold reached EGP 4,046 per gram, while 14-karat gold reached EGP 3,147 per gram, and the gold pound reached EGP 37,753 per gram. Gold prices rose by EGP 10 during trading on Friday, with the 21-karat gold gram opening at EGP 4,720 and closing at EGP 4,730. Meanwhile, the ounce rose by $19, opening at $3,306 and closing at $3,325.
The rise in gold prices in local markets, driven by the rise in ounce prices on the global stock exchange and a relatively stable dollar exchange rate, pushed markets into a state of stagnation.
The decline in purchasing power also contributed to the deepening recession, and markets were witnessing strong sales ahead of Eid al-Adha.
Gold prices rose at the end of trading this week, supported by the decline in the dollar and US Treasury yields, as geopolitical concerns led investors to turn to gold as a hedge.
The first round of trade talks between the United States, led by Treasury Secretary Scott Besant, and China, led by Vice Prime Minister He Lifeng, will begin today, Saturday, in Switzerland. Despite expectations of a de-escalation in the US-China trade war, markets remain cautious.
Trump hinted at imposing 80% tariffs on China as markets prepare for trade talks between the two countries in Switzerland.
The escalating India-Pakistan conflict boosted demand for gold, amid market risk aversion in the dollar and US bonds.
He added that economic uncertainty and trade policy risks are fueling continued successive increases in gold prices, as US tariffs will lead to higher inflation rates.
Markets are anticipating the Federal Reserve's first 25 basis point interest rate cut at its July meeting, with two additional cuts expected by the end of the year.
The central bank left interest rates unchanged in a range of 4.25%-4.50%.
Powell said during a press conference that the central bank is in no rush to cut interest rates despite the uncertainty surrounding the trade war. Meanwhile, the World Gold Council revealed that the People's Bank of China added two tons to its gold reserves in April, for the sixth consecutive month. The National Bank of Poland increased its reserves by 12 tons in April, bringing its total to 509 tons, while the Czech National Bank increased its reserves by 2.5 tons in April.
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