Local Gold Prices Rise
Gold prices in local markets saw a 0.2% increase during the week ending last Saturday evening. Embaby, the CEO of iSagha, noted that local gold prices went up by EGP 5 over the past week. The price of 21k gold started at EGP 3,140 per gram and closed at EGP 3,145.
Global gold prices, on the other hand, experienced a slight decline of 0.6% during the week ending last Friday. This decrease was influenced by factors such as the strengthening dollar and rising Treasury yields, amidst mixed economic data and uncertainty around the US Federal Reserve’s interest rate expectations.
Price Variations in Different Gold Categories
Aside from the 21k gold, other gold categories also witnessed price variations:
- 24-karat gold was priced at EGP 3,594 per gram.
- 18-karat gold was priced at EGP 2,696 per gram.
- 14-karat gold was approximately EGP 2,097 per gram.
- The gold sovereign commanded a price of around EGP 25,160.
Export of Raw Gold and Dollar Exchange Rate
Despite sluggish sales, the export of raw gold continues to dominate local markets, contributing to the gradual rise in prices. Embaby highlighted that the rising exchange rate of the dollar in the parallel market is expected to impact local prices at the beginning of the trading week on Monday, with the dollar exchange rate reaching approximately EGP 48.80 after the Eid al-Adha holiday.
Impact of US Economic Data
Gold prices fell on Friday following their highest weekly level on Thursday. This decline was tied to the release of the US Purchasing Managers’ Index (PMI) data, which showed an increase. The uncertainty surrounding the Federal Reserve’s future interest rate decisions has been fueled by mixed statements from officials, with some suggesting a potential rate cut by year-end while others emphasize the need for further measures.
Moreover, it’s important for investors to keep a close eye on global economic indicators and central bank policies as they continue to influence gold prices in both local and global markets.
