PHOTO
Egypt - Gold prices in local markets rose by EGP 35 over the past week, increasing by 0.9%, despite a 0.4% drop in global gold prices due to intense sell-offs triggered by economic data indicating persistent inflation. This inflation trend suggests that the US Federal Reserve may either keep interest rates steady or cut them by 25 basis points.
According to iSagha’s executive director, Saeed Embaby, the price of 21-karat gold in Egypt started the week at EGP 3,735 per gram, peaked at EGP 3,800, and closed at EGP 3,770. Meanwhile, global gold prices experienced an $11 decline, opening at $2,747, reaching an all-time high of $2,800, and closing at $2,736.
In Egypt, 24-karat gold is now priced at EGP 4,309, 18-karat at EGP 3,231, and 14-karat at EGP 2,514. The price for a gold pound stands at EGP 30,160. Although prices dipped by EGP 5 on Saturday, this change coincided with the global market’s weekend closure.
iSagha’s monthly report also highlights a 6.3% local price increase for October, with 21-karat gold rising by EGP 225 to close at EGP 3,785, while global prices rose by 4.4%, reaching an unprecedented peak at $2,800.
Global gold prices faced intense selling pressure after reaching a peak of $2,800 per ounce, breaking their weekly winning streak with a slight decline of 0.4%.
According to Saeed Embaby, iSagha’s CEO, the upcoming US elections could play a key role in easing market uncertainty and impacting gold’s movement. The potential for former President Donald Trump to win and a likely Republican-controlled Congress has stirred concerns over continued high government spending.
Embaby noted that despite these geopolitical tensions in the Middle East and uncertainty surrounding the US elections, gold prices remain strongly supported due to the slowing US economy and a weakened labour market. In October, the US added only 12,000 jobs, far below the forecasted 100,000—a decline partly attributed to recent hurricanes in the southern states. However, August and September’s significant drops indicate underlying labour market fragility.
Meanwhile, recent economic data revealed that inflation remains elevated, with the core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, showing consumer prices steady at 2.7% over the past three months. Market analysts suggest that should inflation persist at high levels, it will be challenging for the Federal Reserve to significantly lower interest rates before 2025.
Additional data from the Bureau of Labor Statistics noted that the U.S. unemployment rate held at 4.1% in October. Average hourly earnings rose by 4.0% year-over-year and increased by 0.4% month-over-month, with the average workweek lengthening to 34.3 hours.
The markets are now watching a series of economic reports and events, including the Reserve Bank of Australia’s policy decision on Monday, the US Institute for Supply Management’s (ISM) Services PMI, and the US presidential and congressional elections on Tuesday. Further announcements include the Bank of England’s policy decision, weekly US jobless claims, the Federal Reserve’s policy decision on Thursday, and the preliminary University of Michigan Consumer Sentiment Index on Friday.
© 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).