Gold Prices Fluctuate in Egypt
Gold prices in Egypt have been fluctuating below EGP 3,400 per gram, with the precious metal losing momentum following a global price decline. The drop in prices can be attributed to better-than-expected US employment data, while no local factors currently support a price increase.
21-Karat Gold Trading
The most popular 21-karat gold opened trading on Saturday at EGP 3,395 per gram and was trading at EGP 3,390 per gram at the time of Gold Bullion’s technical report. This marked a decline from the previous day when it closed at EGP 3,395 per gram after opening at EGP 3,405 per gram.
Recent Price Movements
Over the past week, gold prices in Egypt dropped by 1.3%, losing EGP 45 to close at EGP 3,395 per gram. This decline is a result of the weakening global gold movement, which has been on a downward trend over the past week. The local gold prices lack supportive factors in the domestic market, further contributing to the decline.
Central Bank Actions
The Central Bank of Egypt (CBE) kept interest rates unchanged during its latest meeting, marking the third consecutive meeting without changes. This decision reflects recent developments and the growth and inflation outlook both domestically and globally since the last meeting. The CBE raised interest rates earlier this year to combat high inflation and allowed the Egyptian pound to float freely against the US dollar, leading to price increases.
Insight:
The current stability of interest rates by the Central Bank of Egypt may impact the future direction of gold prices in the country. As the CBE considers potential interest rate cuts in the future, investors may anticipate changes in the economic landscape that could influence gold prices. Additionally, global economic trends and geopolitical factors will likely continue to play a significant role in shaping the movement of gold prices in Egypt.
Fitch Ratings Prediction
Fitch Ratings has predicted that the CBE will begin a series of interest rate cuts next year. This forecast may have implications for the overall economic climate in Egypt, influencing investment decisions and potentially impacting gold prices in the country.
