logo
Gold Inches Higher as Markets Remain Calm Amid Escalating Tensions

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

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Amazon Halts Shipping to Israel Amid Ongoing Airspace Closure
Amazon Halts Shipping to Israel Amid Ongoing Airspace Closure

See - Sada Elbalad

timean hour ago

  • See - Sada Elbalad

Amazon Halts Shipping to Israel Amid Ongoing Airspace Closure

Rana Atef Amazon, the American e-commerce giant, has announced the suspension of new orders and deliveries to Israel, due to the country's continued airspace closure following the outbreak of conflict with Iran on June 13. In an official statement to Israeli consumers, the company said: 'Due to local restrictions beyond our control, we are currently unable to accept new orders or deliver to your area. We will resume our services as soon as conditions allow.' Israel's Ben Gurion International Airport in Tel Aviv has remained largely closed to both commercial flights and cargo shipments since the escalation began, causing major disruptions to travel and trade. In recent days, Israeli airlines were permitted to operate limited daily flights to repatriate citizens stranded abroad and assist those looking to leave the country. This comes as Israel begins preparations to gradually resume airport operations, following the ceasefire agreement with Iran that came into effect earlier this morning. Full restoration of air services will depend on approval from the country's defense establishment. 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

Olympique Lyonnais relegated to Ligue 2 due to accumulated debts
Olympique Lyonnais relegated to Ligue 2 due to accumulated debts

See - Sada Elbalad

time3 hours ago

  • See - Sada Elbalad

Olympique Lyonnais relegated to Ligue 2 due to accumulated debts

Amir Hagag The French Football Federation, in cooperation with the financial oversight body, announced the relegation of Olympique Lyonnais to Ligue 2 due to the club's worsening financial crisis. The decision comes after the club's debts exceeded €500 million, posing a real threat to its financial stability and continental participation. Lyon's management had been given a deadline at the beginning of the current season to provide evidence of a partial settlement of these debts, but the documents submitted were insufficient to convince the regulatory body. Although the club has the right to appeal the decision, its current position is officially in Ligue 2, a significant blow to its history and standing in French football. Earlier last December, UEFA provisionally banned Lyon from participating in the Europa League due to its 2024 financial statements failing to meet the continuity criteria. The sanction was later lifted after auditors narrowly approved the accounts, but UEFA has kept the club under close scrutiny. Lyon finished last season in the French league in sixth place, with 57 points, achieving 17 wins and six draws. The club is considered one of the most prestigious teams in France, having won the French league title seven times and the French Cup five times. read more Japan Stun Spain 2-1 to Qualify for World Cup Last 16 World Cup 2022: Get to Know Confirmed Line-ups of Japan and Spain Group E Decider Saudi Arabia Bid Farewell to World Cup after 2-1 Loss to Mexico Tunisia Achieve Historic Win over France but Fail to Qualify Tunisia to Clash against France in World Cup Sports Get to Know Squad of Group D Teams in World Cup Sports Al Ahly Gift EGP 70,000 to Players After Claiming Egyptian Super Cup Title Sports Bencharki Hits First 2 Goals with Al Jazira Since Leaving Zamalek Sports Arsenal Possible Line-up for Nottingham Forest 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

US Fed chair signals no rush for rate cuts despite Trump pressure - Economy
US Fed chair signals no rush for rate cuts despite Trump pressure - Economy

Al-Ahram Weekly

time6 hours ago

  • Al-Ahram Weekly

US Fed chair signals no rush for rate cuts despite Trump pressure - Economy

US Federal Reserve Chair Jerome Powell told lawmakers Tuesday that the central bank can afford to wait for the impact of tariffs before deciding on further interest rate cuts, despite President Donald Trump's calls to slash levels. The Fed has a duty to prevent a one-time spike in prices from becoming an "ongoing inflation problem," Powell said before the House Committee on Financial Services. "For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," he added. Powell's reiteration that the Fed can wait to lower rates also pushes back on two officials' openness to cuts as early as in July. They are Christopher Waller and Michelle Bowman, both members of the Fed's board. Asked about Waller's views on a pathway to rate cuts, Powell declined to comment. But he said officials could be inclined to lower rates sooner if inflation were weaker than expected or if the labor market deteriorated. The Fed has held the benchmark lending rate steady this year following its last reduction in December, bringing the level to a range between 4.25 percent and 4.50 percent. After last week's announcement that the bank will keep rates unchanged for a fourth straight policy meeting, Powell told reporters that it would make smarter decisions if it waited to understand how Trump's tariffs impact the economy. But hours before Powell's testimony Tuesday, Trump again urged the chair of the independent Fed to slash rates, saying these should be "at least two to three points lower" as inflation remains benign. "I hope Congress really works this very dumb, hardheaded person, over," Trump wrote on his Truth Social platform. Asked about Trump's criticism, Powell said: "We're focused on one thing and that is, we want to deliver a good economy for the benefit of the American people." "We always do what we think is the right thing to do, and you know, we live with the consequences," he told lawmakers. "I don't know how else to do the job." 'Still strong' Powell maintained Tuesday that it remains unclear how concerns over US trade policies could affect future spending and investment. "Increases in tariffs this year are likely to push up prices and weigh on economic activity," he said. Meanwhile, data suggest that at least some of the levies will be borne by consumers, he added. But he stressed it would be "inappropriate for us to comment on the policy of tariffs." For now, Powell said: "Despite elevated uncertainty, the economy is in a solid position." "I wouldn't want to point to a particular meeting," he noted of the possibility of a July rate cut. "I don't think we need to be in any rush, because the economy is still strong." He said "credibility on inflation is hard-won," adding that officials are "just being careful with potential inflation risks" as they navigate the path forward. Since returning to the presidency, Trump has imposed a 10 percent tariff on almost all trading partners and steeper rates on imports of steel, aluminum and autos. Economists warn Trump's levies could fuel inflation and bog down economic growth, although widespread effects have so far been muted. This is partly because Trump has backed off or postponed his most punishing salvos. Businesses also stockpiled inventory in anticipation of the duties, avoiding immediate price hikes. Powell expects to learn more about the tariffs' effects over the summer, as they filter through. Although the Fed has penciled in two rate cuts this year, there is growing divergence among policymakers about whether it can lower rates at all in 2025. Powell said a "significant majority" of the Fed's rate-setting committee still feels it will be appropriate to reduce rates later this year. While inflation has eased significantly from highs in mid-2022, Powell noted this remains somewhat above the bank's longer-run two percent goal. On conflict in the Middle East, Powell added that "it's too early to know what any economic implications might be." Follow us on: Facebook Instagram Whatsapp Short link:

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store