Gold Shines Amid Rising Geopolitical Tensions and a Weaker Dollar
Gold prices surged in both local and global markets on Thursday, fueled by increased demand for the yellow metal as a safe haven amid escalating tensions between Iran and Israel and a weakening U.S. dollar. Investors are also closely watching for new signals on the future path of U.S. monetary policy.
In Egypt's local market, gold prices jumped by EGP 55, with the price of 21-karat gold reaching EGP 4,720, up from EGP 4,665 at the start of yesterday's trading. Meanwhile, the global spot price of gold rose by $27 per ounce, climbing to $3,380. This increase was reflected across all karat levels: 24K gold recorded EGP 5,394, 18K at EGP 4,046, and 14K at EGP 3,147. The gold pound (8g of 21K) reached EGP 37,760.
This upward movement comes as markets remain on edge. Reports, including one from NBC News, indicate that Israel is considering a potential military strike against Iran. This heightened geopolitical risk has driven investors toward gold as a hedge against uncertainty. Additional tension was fueled by comments from former U.S. President Donald Trump, who threatened new tariffs — adding to the pressure on the global economic outlook and further supporting gold's rally.
Gold also benefited from a noticeable decline in the U.S. dollar following the release of inflation data, which showed a modest slowdown in consumer price growth. This has increased speculation that the Federal Reserve may have room to cut interest rates later this year.
U.S. consumer price index (CPI) data showed that annual inflation rose to 2.4% in May, in line with market expectations, while core inflation — which excludes volatile food and energy prices — held steady at 2.8%. Analysts interpreted this as a sign that inflationary pressures are easing, supporting the position of Federal Reserve members advocating for a more accommodative monetary policy.
Markets are now awaiting the release of the U.S. Producer Price Index (PPI) later today. Forecasts suggest the annual PPI may rise by 2.6% in May, compared to 2.4% in April, with the core rate expected to remain unchanged at 3.1%. These figures will be critical in shaping expectations ahead of the Fed's next policy meeting, scheduled for June 17–18.
On the European front, the European Central Bank released its annual report on the euro, noting that central banks' gold reserves have reached approximately 36,000 tonnes — near pre-Bretton Woods levels. This indicates a continued trend among central banks to bolster their gold holdings, lending support to price stability in the near term.
Against this backdrop, gold remains underpinned by a confluence of supportive factors: rising geopolitical risks, a weaker dollar, and growing expectations of a 50-basis-point interest rate cut by the Federal Reserve before year-end — all reinforcing a bullish outlook for the yellow metal in the coming period.
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
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
News
Shell Unveils Cost-Cutting, LNG Growth Plan
Videos & Features
Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
Technology
50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
News
3 Killed in Shooting Attack in Thailand
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
See - Sada Elbalad
2 hours ago
- See - Sada Elbalad
Beirut Port Sees Container Traffic Surge to Highest Monthly Level in More than 5 Years
Taarek Refaat Beirut Port has recorded its highest monthly container traffic since 2019, signaling a notable rebound in Lebanon's maritime trade activity after years of stagnation and crisis. According to a statement issued Friday by the Port of Beirut's Management and Investment Authority, container throughput in July reached approximately 100,000 twenty-foot equivalent units (TEUs), a 39% increase compared to the same month in 2024, when the figure stood at 72,000 TEUs. The authority credited the surge to improvements in operational infrastructure, streamlined logistics services, and the renewed confidence of global shipping lines. The port's container terminal is operated by CMA CGM, a leading French container transportation and shipping company. 'This level marks the highest container activity at the port since 2019, reaffirming Beirut's position as a key maritime hub in the Eastern Mediterranean,' the statement said. The increase in activity follows a turbulent period for Beirut Port, which was devastated by a massive explosion in August 2020 that killed over 200 people and destroyed large parts of the surrounding area. Recovery efforts in the years since have been slow, hampered by Lebanon's ongoing economic and political instability. However, port officials say a combination of strategic reforms, improved operational flow, and international partnerships have led to a renewed sense of optimism. Shipping companies have begun to reintroduce Beirut into their regular routes, a vote of confidence in the port's ability to handle cargo efficiently and securely. 'The port is working to further enhance the working environment and upgrade services to ensure this positive momentum continues,' the statement added. Beirut Port, alongside Rafic Hariri International Airport, remains one of Lebanon's most vital trade and logistics gateways. The new figures come as a welcome sign of economic resilience amid a broader national crisis. 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 Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani Sports Get to Know 2025 WWE Evolution Results
See - Sada Elbalad
2 hours ago
- See - Sada Elbalad
US Job Growth Slows Sharply, Unemployment Rate Surges
Taarek Refaat The U.S. labor market showed clear signs of fatigue in July, with job creation slowing significantly and previous months' gains revised sharply downward, a signal that the broader economy may be losing steam faster than anticipated. According to data released Friday by the U.S. Bureau of Labor Statistics (BLS), nonfarm payrolls increased by just 73,000 last month, far below economists' expectations. Additionally, the employment figures for May and June were revised down by a combined 260,000 jobs, underscoring the weakening trend. The unemployment rate rose to 4.2%, up from 4.0% in June. The slowdown suggests that the once-resilient U.S. labor market is now facing more than just cyclical headwinds. Hiring has slowed across key sectors, including manufacturing, professional services, and government. Local public education, in particular, saw substantial downward revisions. Private-sector hiring showed some recovery in July, mainly due to gains in health care and social assistance, but it was not enough to offset broader softness. 'This isn't just a moderation anymore,' said one senior labor economist. 'It's a clear signal that both employers and workers are feeling the strain of an economy losing momentum.' At the same time, wage growth has stalled, compounding challenges for American households already grappling with the lingering effects of high prices and rising borrowing costs. The report comes at the end of a week filled with weaker-than-expected data on consumer spending, inflation progress, and business activity, all reinforcing the Federal Reserve's decision to hold interest rates steady at its latest policy meeting. However, the internal divide among policymakers appears to be widening. Despite Friday's data, Fed Chair Jerome Powell insisted earlier this week that the labor market remains 'strong,' arguing that inflationary risks persist, especially following the latest tariff announcements from President Donald Trump's administration. Still, markets reacted negatively to the jobs report: U.S. stock futures remained lower, while Treasury yields and the dollar both fell. Investors are now increasingly betting that the Fed could pivot toward rate cuts as early as the fourth quarter, should labor and inflation trends continue in this direction. The next Federal Reserve meeting is scheduled for September, by which time officials will have access to another jobs report and a new round of inflation data. Those indicators may prove decisive in shaping the central bank's next steps. Meanwhile, concerns are growing that slower hiring could feed into reduced consumer spending, further dragging on GDP growth in the second half of 2025. 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 Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani Sports Get to Know 2025 WWE Evolution Results
Mid East Info
3 hours ago
- Mid East Info
Eurozone CPI holds steady, reinforcing ECB's wait-and-see approach - Middle East Business News and Information
By Daniela Sabin Hathorn, senior market analyst at The preliminary July reading of Eurozone inflation showed no change in both headline and core CPI, which remained at 2.0% and 2.3% year-over-year, respectively. Markets had been expecting a slight dip in headline inflation to 1.9%, but month-on-month figures suggest price pressures continue to ease, hinting at softer inflation prints ahead if the trend persists. Policy implications: ECB can afford to stay put: The European Central Bank (ECB) appears to be achieving a delicate balance between supporting growth and containing inflation. With the headline CPI exactly at the ECB's 2% target, policymakers are likely comfortable with current conditions. While the risk of undershooting inflation targets cannot be dismissed entirely, the ECB's easing cycle seems to have reached a pause, with no further rate cuts expected through at least the end of 2026. At this point, only a severe and unexpected shock to growth would likely prompt the ECB to cut further, and with most of the tariff uncertainty between the US and the EU now resolved, it is unlikely that such thing will happen anytime soon. For now, the ECB is likely to remain data-dependant, especially as it monitors how the new tariff levels impact growth in different European economies. Market reaction: As for markets, the CPI released hasn't done much to change the sluggish sentiment in European assets. Equity indices are facing increased selling pressure on Friday morning as global sentiment sours on the day that Trump's tariff extension deadline comes to an end, with several countries facing higher tariffs in the absence of a deal. Whilst this isn't the case for the EU, the bullish momentum that was powering equities over the past few weeks seems to have dried up somewhat, leading to a reversal in global equities. Meanwhile, EUR/USD is attempting to find some footing after facing heavy losses this week, primarily on the back of a continued resurgence in the US dollar. Whilst other USD pairs are facing further bearish pressure on Friday, EUR/USD is holding on to the 1.14 mark for the third consecutive session, potentially finding some strength in the CPI data release. However, with the RSI nearing oversold levels and continued upside expected in the dollar, the support is unlikely to hold much longer, with the 100-day SMA at 1.1360 likely to be the next test. EUR/USD daily chart: Past performance is not a reliable indicator of future results.
