Gold prices in the local markets fell by 0.4% during last week's trading, while the global ounce dropped by approximately 2.5%. This ended a four-week consecutive rally amid escalating pressures linked to rising oil prices, a strong dollar, and increasing bond yields, alongside ongoing geopolitical tensions, according to the weekly report issued by the "Marsad Al Dahab" for Economic Studies.
Dr. Walid Farouk, a researcher in gold and jewelry affairs and Director of the "Marsad Al Dahab," stated that local gold prices decreased by about 30 EGP during the week ending yesterday evening. The 21-karat gold gram opened at 7,030 EGP and closed at 7,000 EGP.
Local Market Prices:
24-karat gold: 8,000 EGP per gram.
18-karat gold: 6,000 EGP per gram.
Gold Pound: 56,000 EGP.
Global Market Performance:
On the global front, the ounce fell by approximately $122 during the week. According to World Gold Council data, trading opened at $4,832 and concluded the week at $4,710.
Data from the "Marsad Al Dahab" noted that local markets saw a slight increase during Saturday's trading by 10 EGP; the 21-karat gram opened at 6,990 EGP and closed at 7,000 EGP, coinciding with the global stock exchange’s weekend holiday.
Drivers of the Decline:
The report explained that the weekly decline resulted from a mix of economic and geopolitical factors:
Rising Oil Prices: Increased fears of returning inflationary pressures.
Stronger Dollar: Boosted by rising U.S. Treasury yields, which limited gold's attractiveness to investors.
Bond Yields: The 10-year U.S. Treasury yield rose by 1.5% during the week, while the dollar recorded its first weekly gain in three weeks.
Market Outlook:
Despite the fragile ceasefire between the United States and Iran, tensions persist, keeping markets in a state of anticipation. Investors are awaiting a package of critical economic data next week, including the Federal Reserve's interest rate decision, GDP data, durable goods orders, and labor market reports.
Follow the latest news on Google News
