Thursday 21 Nov
Gold prices in Egypt opened trading on Friday, August 30, 2024, showing little change. The price of 21-karat gold remained at 3,450 Egyptian pounds per gram, excluding manufacturing costs. Global market trends can influence gold prices.
Gold prices in Egypt:
24-karat: EGP 3,944
21-karat: EGP 3,450
18-karat: EGP 2,955
14-karat: EGP 2,313
Gold pound: EGP 27,600
Global gold:
International gold prices
experienced a minor decline of less than 0.1% on Friday. An ounce of gold was
trading at $2,519, down from the day's opening price of $2,520. The lowest
price reached during the session was $2,512 per ounce. This analysis is based
on data from Gold Billion.
Gold continues to rise: Third
consecutive week of gains
Gold prices have maintained an
upward trajectory, recording a 3% increase in August. This marks the third
consecutive week and the second consecutive month of gains, with a total rise
of 22% since the beginning of the year.
US interest rate cuts bolster
gold prices
The growing anticipation of a US
Federal Reserve interest rate cut next month is further supporting the rise in
gold prices. Lower interest rates reduce the opportunity cost of holding gold,
which does not yield interest, making it a more attractive investment option.
Market forecasts for interest
rate policy
Traders are currently predicting a significant probability of interest rate cuts next month
A 66% chance of a 25 basis point
cut.
A 34% chance of a 50 basis point
cut.
Gold and dollar outlook:
The upcoming week will be
critical for gold and dollar investors as the US Federal Reserve prepares to
announce its interest rate decision and crucial inflation data is released.
If the Fed opts for a 25 basis
point interest rate cut in September, as widely anticipated, it may not
significantly impact gold prices. This scenario is already factored into market
expectations.
However, if the Fed signals that
the rate cut is a one-off event and not the start of a series, the US dollar
could appreciate. This could put downward pressure on gold prices, as the
dollar and gold often have an inverse relationship.
US inflation data
The release of the US Personal
Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, will
be closely watched. This data will influence the Fed's future interest rate
decisions and, consequently, the direction of gold prices.
Overall, gold prices are highly sensitive to interest rate expectations and economic data. The upcoming releases will play a significant role in determining the market's trajectory in the weeks ahead.
