Gold Inches Higher as Markets Remain Calm Amid Escalating Tensions
Waleed Farouk
Gold prices saw a modest rise in local markets on Monday, reflecting a similar uptick in global bullion, as geopolitical risks mount and traders remain on edge awaiting Iran's response to U.S. military actions. Yet, despite the unfolding events, financial markets displayed an unusual calm — a tone more reflective of cautious observation than panic.
In local markets, gold climbed by EGP 25 per gram compared to Saturday evening, with 21-karat gold recording EGP 4,825 per gram. Globally, the ounce hovered around $3,381, recovering slightly after a week of losses.
Across other karat levels:
24k gold reached EGP 5,514
18k traded at EGP 4,136
14k at EGP 3,217
The gold pound stood at EGP 38,600
Last week's performance, however, painted a different picture — gold had declined by EGP 100 locally and lost $61 per ounce globally, pulled down by a stronger dollar and markets repositioning for tighter U.S. monetary policy.
A Strange Calm in the Face of Conflict
Despite U.S. airstrikes on Iranian nuclear facilities, described by former President Donald Trump as a 'highly successful operation,' there was no rush into safe havens. Trump's warning of 'more targets' unless Tehran backs down did little to shake global equity markets or ignite a gold rally.
Instead, markets are treading carefully, perhaps calculating that Iran's ability to respond is currently constrained — politically, militarily, or both.
This atmosphere of "measured calm", as some analysts put it, has kept gold's gains in check. While prices edge higher, they remain confined within familiar technical boundaries, with $3,400 an ounce still acting as a stubborn ceiling.
Economic Signals Blur the Picture
Meanwhile, fresh data from S&P Global on Tuesday showed that U.S. economic activity continues to grow, albeit at a slower pace. The Composite PMI for June dipped slightly to 52.8, down from 53.0 in May. Yet this still marks the 29th consecutive month of expansion in output — a testament to the economy's resilience.
The data showed:
The Manufacturing PMI held steady at 52.0, beating expectations
The Services PMI rose to 47.7, up from 46.4, yet still signaling contraction
For gold traders, these numbers offered little clarity. Growth is holding up, but so is inflation. This duality suggests the Federal Reserve will stay cautious, maintaining interest rates at elevated levels for longer.
Commenting on the outlook, Saeed Embabi, Executive Director of the iSagha platform, noted that this mix of moderate growth and sticky inflation means rate cuts are likely off the table for now. The Fed's balancing act — between containing inflation and supporting the economy — has only grown more complex.
All Eyes on Powell and U.S. Data
The markets now turn to a critical week of data releases and testimony. Fed Chair Jerome Powell is set to speak before Congress on Tuesday and Wednesday, and investors will be parsing every word for clues on future policy.
In addition, the U.S. will release:
Consumer Confidence Data on Tuesday
New Home Sales, Durable Goods, Jobless Claims, and GDP on Thursday
The closely watched Core PCE Inflation Reading on Friday — a potential game-changer
With global tensions simmering and economic signals mixed, the path for gold remains uncertain. But as always, uncertainty itself may be the metal's greatest ally.
read more
CBE: Deposits in Local Currency Hit EGP 5.25 Trillion
Morocco Plans to Spend $1 Billion to Mitigate Drought Effect
Gov't Approves Final Version of State Ownership Policy Document
Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister
Qatar Agrees to Supply Germany with LNG for 15 Years
Business
Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves
Business
Suez Canal Records $704 Million, Historically Highest Monthly Revenue
Business
Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday
Business
Wheat delivery season commences on April 15
News
China Launches Largest Ever Aircraft Carrier
Sports
Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer
Lifestyle
Get to Know 2025 Eid Al Adha Prayer Times in Egypt
Videos & Features
Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall
Business
Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War
Arts & Culture
Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies
News
Flights suspended at Port Sudan Airport after Drone Attacks
Videos & Features
Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
News
Shell Unveils Cost-Cutting, LNG Growth Plan
Technology
50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mid East Info
2 hours ago
- Mid East Info
Geopolitical Escalation in the Middle East: strategic and market implications
By Daniela Sabin Hathorn, senior market analyst at Tensions in the Middle East have once again taken centre stage in global geopolitics, following a significant escalation involving U.S. military action and potential retaliatory measures from Iran. Over the weekend, President Trump confirmed that the United States conducted targeted strikes on three key nuclear sites within Iran—an action that could set back the country's nuclear ambitions by several years. In response to the U.S. strikes, the Iranian Parliament has voted unanimously to support the closure of the Strait of Hormuz—a critical maritime chokepoint through which approximately 20% of the world's oil supply flows. This potential blockade has prompted serious market speculation, although no physical action has been taken yet. Despite the gravity of this political manoeuvre, global markets appear to be adopting a wait-and-see approach. There's widespread debate over whether Iran is posturing or preparing for concrete retaliation. The possibility of closure looms, but consensus suggests that Iran might hesitate due to the strategic and economic costs associated with such a move. Market Reactions: Initial Shock, Measured Response: Financial markets have responded with caution. Oil prices spiked as much as 3–4% at the Asian open but later retraced, now up only about 1% for the day. This muted reaction suggests that investors are not yet pricing in a full-scale disruption of global oil supplies. Gold prices have remained relatively steady, indicating that geopolitical fear has not permeated deeply into safe-haven assets. However, the U.S. dollar has seen gains, driven by its traditional role as a liquidity haven in times of uncertainty. Currencies from energy-importing regions such as the Eurozone and Japan have seen minor weakness—partly due to their vulnerability to higher energy costs—but these moves remain marginal. US crude (WTI) daily chart: Past performance is not a reliable indicator of future results. Several factors may inhibit Iran from initiating a full blockade: Military Vulnerability: Reports suggest that Iran failed to detect or intercept the U.S. strikes, raising questions about its control of national airspace. Weakened Regional Influence: Iran's network of allies and proxies across the region has been strained by other ongoing conflicts. Allied Positions: Key allies like China—one of Iran's top oil clients—would suffer economically from a disruption to oil shipments, giving Tehran little support for a drastic escalation. These elements combine to suggest that while the rhetoric is intense, actual retaliatory capacity is likely restrained. Iran's economy is heavily reliant on energy exports. Blocking the Strait of Hormuz would not only harm adversaries but also severely restrict Iran's own revenue flow. Market sentiment reflects this logic, pricing in the risk of conflict while assigning a low probability to sustained disruption. Market Outlook: Volatility Likely to Persist: While oil prices haven't surged dramatically, they are expected to remain elevated due to the persistent threat of disruption. Even if the blockade doesn't materialize, the mere possibility could serve as a consistent source of upward pressure. A return to pre-June price levels would likely require a swift and peaceful resolution to the crisis—something that, as of now, seems improbable. Put simply, the threat of The Strait possibly being closed is enough to keep oil prices elevated for the foreseeable future. Looking ahead, markets appear willing to tolerate a localized conflict, particularly one that does not impact critical energy infrastructure. However, any expansion of the conflict to include direct attacks on oil facilities or successful blockades would represent a high-impact, low-probability tail risk. OPEC, particularly Saudi Arabia, remains a potential stabilizing force. Their response—whether to increase production in support of global supply or to leverage the situation for political alignment—will be a key determinant of market dynamics moving forward. Conclusion: While the situation remains fluid, the balance of evidence suggests that markets are bracing for volatility without yet panicking. The strategic and economic barriers to an Iranian blockade are substantial, and the limited market reaction reflects a collective judgment that the conflict, while serious, remains containable for now. As developments unfold, close attention will be paid to both geopolitical signals and the behaviour of key commodities. The interplay between strategic military decisions and global economic stability has seldom been more pronounced.
Al-Ahram Weekly
3 hours ago
- Al-Ahram Weekly
Airlines disrupted by Iran-Israel conflict - Region
Global airlines have suspended or reduced flights in the Middle East as the conflict between Israel and Iran rages after the United States bombed three Iranian nuclear enrichment sites at the weekend, and Iran retaliated hitting an American airbase in Qatar. The United States carried out strikes against Iranian nuclear sites overnight Saturday to Sunday after over a week of deadly missile exchanges between Israel and Iran. Following that, Iran retaliated, attacking the United States by targeting the Al Udeid Air Base in Qatar, the largest US military installation in the Middle East. Here is the latest airline situation: Middle east airlines Bahrain and Kuwait have reopened their airspace following brief precautionary closures earlier Monday, their state news agencies announced, as regional tensions ease slightly after Iranian strikes. In the United Arab Emirates, Dubai Airports resumed operations, according to the Dubai Media Office. However, authorities cautioned that passengers may still experience delays or cancellations due to earlier disruptions. Flightradar24 added that more than 10 flights earlier had to divert from the UAE. Meanwhile, Oman Air has temporarily suspended all flights to and from Manama, Dubai and Kuwait due to escalating regional tensions, the airline announced. In a statement, the airline said it was "monitoring the situation closely" and would resume operations once it was deemed safe. EgyptAir also announced the cancellation of all flights between Cairo and several cities in the Gulf due to ongoing regional tensions and the closure of airspace in multiple countries. The airline said the decision would remain in effect until the situation stabilizes. Before the Iranian retaliation, Qatar temporarily suspended air traffic around the country, its foreign ministry said. "The competent authorities announce the temporary suspension of air traffic in the country's airspace, as part of a set of precautionary measures taken based on developments in the region," the foreign ministry said. European airlines British Airways cancelled flights between London's Heathrow Airport and Dubai and Doha on Sunday following the US strikes on Iran. The airline said Monday it was scheduled to operate those routes as normal, though there were some cancellations ahead of a clutch of evening flights. Air France halted flights to Saudi Arabia and the United Arab Emirates until at least Tuesday inclusive, the airline said. It also extended the suspension of the Paris-Tel Aviv route until July 14. Flights of Air France's low-cost carrier Transavia from Paris to Beirut have been suspended until June 30 while the Tel Aviv route is closed until September 7. Germany's Lufthansa group, whose other airlines include Swiss, Austrian and ITA, has suspended flights to the Middle East until June 30. The Amman and Erbil, Iraq, routes were also suspended until July 11. The group will not fly to Tel Aviv and Tehran will until July 31 and is also avoiding the air space of countries involved in the conflict. Greece's Aegean Airlines has stopped Tel Aviv flights until July 12. Its Amman, Beirut and Erbil routes are closed until June 28. Turkish airline Pegasus has scrapped flights to Iraq, Jordan and Lebanon until June 30, and Iran until July 30. Flag carrier Turkish Airlines on Monday cancelled its remaining flights for the day to Bahrain, Dammam, Doha, Dubai, Kuwait, Abu Dhabi and Muscat. No Turkish Airlines flights to Baghdad, Damascus and Tehran are available before July 1. Finnair meanwhile confirmed it was suspending flights to Doha. The carrier is also staying out of the airspace of Iran, Iraq, Syria and Israel. US and Canadian airlines United Airlines has warned passengers that flights to and from Dubai scheduled between June 18 and July 3 may be affected and is offering no-fee ticket changes under certain conditions due to Middle East unrest. The US airline has implemented the same flexibility for Tel Aviv flights between June 13 and August 1, allowing customers to rebook for other major European cities. Air Canada has temporarily suspended its daily non-stop service from Toronto to Dubai starting June 18 and warned the suspension could be extended. Travel via a European stopover on a partner airline remains possible, according to its website. American Airlines is allowing customers to change their bookings to Doha without fees for travel originally scheduled between June 19 and July 20. Asian airlines Singapore Airlines has cancelled eight flights to Dubai -- two per day from Sunday through Wednesday. *This story was edited by Ahram Online Follow us on: Facebook Instagram Whatsapp Short link:
See - Sada Elbalad
3 hours ago
- See - Sada Elbalad
NATO Agrees on 5% Defense Spending Target
Israa Farhan NATO member states have agreed to raise their defense spending to 5% of national GDP by 2035, marking the most significant military investment pledge in the alliance's history. The agreement, expected to be formally ratified during the upcoming two-day NATO summit in The Hague, sets a dual spending threshold: 3.5% of GDP dedicated to core military operations, with an additional 1.5% allocated for related defense initiatives. The target represents a long-standing demand of former US President Donald Trump, who criticized European allies for relying too heavily on American defense resources. While most members backed the proposal, Spain initially opposed the measure. Prime Minister Pedro Sánchez argued that the 5% target was disproportionate and counterproductive, insisting Spain could meet NATO obligations with just 2.1% of GDP. However, a compromise was reached, granting Spain an exemption from the requirement, allowing the deal to proceed. Sánchez's resistance reflects broader domestic pressures. He is currently navigating a political crisis fueled by a corruption scandal, while facing internal opposition from his left-wing coalition partner, Sumar, which is firmly against any increase in military spending. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
