(MENAFN- Daily News Egypt) Gold prices rose slightly in local markets on Saturday, following a week of gains fuelled by growing expectations of a US federal Reserve interest rate cut next month.
The price of 21-karat gold per gram reached EGP 3,465 on Sunday, up EGP 5 from the close of trading on Saturday, according to Saeed Embaby, CEO of the online gold and jewellery trading platform iSaqa. The ounce closed the week at $2,512, marking a weekly rise of $4, or 0.2%.
Embaby noted that the price of 24-karat gold per gram was EGP 3,960, 18-karat gold was EGP 2,970 per gram, 14-karat gold was EGP 2,310 per gram, and the gold pound was EGP 27,720.
Gold prices in the local market increased by about EGP 5 during trading on Friday. The price of 21-karat gold per gram started at EGP 3,455 and ended at EGP 3,460. Meanwhile, gold prices on the global stock exchange rose by $29, with the ounce opening at $2,483 and closing at $2,512.
Embaby explained that global gold prices opened the week at $2,508 per ounce, fell to $2,490, and then rose again above $2,500. He added that gold prices reached an all-time high of $2,532 on Tuesday, but this increase was short-lived, with prices falling back to $2,506.
He noted that gold prices experienced a phase of relative stability and consolidation in the middle of the week, trading between $2,500 and $2,519. However, on Thursday morning, the release of worse-than-expected US unemployment claims drove gold prices down from $2,503 to a weekly low of $2,475 per ounce.
He pointed out that gold prices showed slow movements over the last two days of the week, rebounding above the $2,500level before rising sharply following Federal Reserve Chairman Jerome Powell's speech at Jackson Hole.
The CEO of iSaqa disclosed that now is an opportune time for gold, as it is expected to experience historic highs in the near future, with the US Federal Reserve beginning to lower interest rates. The markets received a clearer signal of this on Friday during Jerome Powell's speech at the Jackson Hole central banks' symposium.
Gold prices rose by approximately 1% at the end of trading on Friday, following remarks from Jerome Powell, where he hinted at the possibility of a US interest rate cut in September. He warned that“negative risks” threatening the US labour market had increased.
In his speech, Powell stated,“It is time to adjust policy. The direction is clear, and the timing and pace of any rate cuts will depend on incoming data, evolving forecasts, and risk balances.”
Powell added that the Federal Reserve will do everything it can to support a strong labour market while making further progress toward price stability” and warned that upside risks to inflation have diminished, while downside risks to employment have increased.
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