Gold Prices Steady Locally and Globally Amid Fed Rate Cut Uncertainty and Washington Tensions
Waleed Farouk
Gold prices in the local market remained stable during Thursday's trading session, coinciding with a slight uptick in global spot prices. The stability comes as the U.S. dollar index and Treasury yields weakened, amid growing divergence between Federal Reserve Chair Jerome Powell and former President Donald Trump over the timing of interest rate cuts.
According to data from the 'iSagha' gold trading platform, the price of 21-karat gold held steady at EGP 4,705 per gram, while the global spot price of gold rose by just $1, reaching $3,332 per ounce.
Other domestic price levels included:
24-karat gold: EGP 5,377 per gram
18-karat gold: EGP 4,033 per gram
14-karat gold: EGP 3,137 per gram
Gold sovereign: EGP 37,640
Gold had seen a minor increase of EGP 5 on Wednesday, with the 21-karat gram starting at EGP 4,700 and closing at EGP 4,705. Globally, gold gained $14 during that session, rising from $3,317 to $3,331 per ounce.
Despite investor interest shifting towards equities, gold prices have remained relatively steady both locally and internationally. This is largely attributed to weakening confidence in the U.S. dollar, driven by mixed and often conflicting signals from U.S. monetary policy.
Markets are currently focused on when and how quickly the Federal Reserve may begin cutting interest rates, bringing economic data back into the spotlight as a major influence on monetary policy decisions.
On Wednesday, Fed Chair Jerome Powell concluded his semi-annual testimony before Congress, where he was grilled over the central bank's monetary policy report. While several global central banks have already begun easing rates in response to cooling inflation, the Federal Reserve has maintained its benchmark interest rate in the range of 4.25%–4.50% throughout this year.
With inflation now approaching the Fed's 2% target, debate has intensified over the timing of the next rate cut. Recent U.S. economic data, including the Consumer Confidence Index released on Tuesday and New Home Sales data released on Wednesday, point to increasing economic strain. However, Powell remains concerned about the inflationary risks of tariffs, which he believes may take time to fully materialize.
Durable Goods Orders Jump More Than Expected
On Thursday, the U.S. Census Bureau reported that durable goods orders rose by 16.4% in May, equivalent to $48.3 billion, bringing the total to $343.6 billion. This followed a revised 6.6% decline in April, and far exceeded market expectations of an 8.5% increase.
The report added:
'Excluding transportation, new orders rose 0.5%. Excluding defense, orders rose 15.5%.'
The increase was led by transportation equipment, which rose for the fifth time in six months, surging by 48.3% to $145.4 billion.
The U.S. Department of Labor also reported a drop in initial jobless claims, which fell to 236,000 for the week ending June 21, down from a revised 246,000 the previous week.
However, continuing claims rose by 37,000, reaching 1.974 million for the week ending June 14. The insured unemployment rate remained unchanged at 1.3%, and the four-week moving average dropped by 750 to 245,000.
Trump vs. Powell
Former President Donald Trump addressed the media Wednesday at the NATO Summit, touching on several issues, including the state of the U.S. economy.
He once again criticized Fed Chair Powell for being 'too slow to cut interest rates,' stating:
'Fortunately, he'll be gone. I think he's been very bad.'
Geopolitical Calm Reduces Demand for Safe-Haven Assets
Geopolitical risk has also subsided for now, as the ceasefire between Israel and Iran continues for a third consecutive day. While the situation remains fragile, the absence of further escalation has led to weaker safe-haven demand for gold and precious metals.
Consequently, market attention has shifted back to macroeconomic indicators and monetary policy, which are likely to drive the next phase of movement in gold prices.
A key data point to watch is Friday's release of the U.S. Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge.
Any soft reading could revive expectations of near-term rate cuts — and give gold a strong bullish impulse.
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
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
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
See - Sada Elbalad
4 hours ago
- See - Sada Elbalad
Gold Remains Calm Amid Escalating Middle East Tensions
Waleed Farouk Despite mounting geopolitical tensions in the Middle East and an exchange of strikes between Israel and Iran, gold has remained remarkably calm, holding just below the $3,400 per ounce mark — an unusual reaction from the traditional 'crisis safe haven.' In a scene fraught with serious developments, Israeli and U.S. strikes targeted Iranian nuclear facilities, including the heavily fortified Fordow reactor. Iran responded with what were described as attacks near Israel's Dimona nuclear facility in the Negev. Yet, despite the political and military uproar, gold prices showed little reaction, moving modestly from $3,250 to $3,450 per ounce — falling short of any significant rally. Deterrence, Not War Markets interpreted the strikes as acts of mutual deterrence, not a full-scale war. While the escalation was undoubtedly serious, it lacked signs of further escalation or a direct threat to global economic stability — depriving gold of the fear-driven momentum it typically thrives on. Instead, investor attention turned to energy markets, where oil stole the spotlight as the asset most sensitive to geopolitical risk. Gold, by contrast, faced stiff competition from more liquid safe havens such as the U.S. dollar, Swiss franc, and Japanese yen — all favored in a tight monetary environment for their rapid exit potential. Gold had already seen a gradual price increase in anticipation of mounting tensions, meaning the military action itself didn't catch the market off guard. Traders responded with the classic strategy of "sell the news" — buying on rumors and selling on confirmation. U.S. Interest Rates: Gold's Real Rival The recent implementation of U.S. tariffs reignited inflation, diminishing hopes for near-term interest rate cuts. As the Federal Reserve continues to enforce tight monetary policy, gold loses its edge to higher-yielding assets like U.S. Treasury bonds. No Global Panic, No Gold Surge Historically, gold's strongest rallies have come during periods of global financial panic — such as the 2008 financial crisis, the 2020 COVID-19 pandemic, or the 2022 Ukraine invasion. In contrast, the Fordow strike, while symbolically nuclear, remained regionally contained and did not disrupt global supply chains or paralyze economies. Quiet Coordination Behind the Scenes Speculation of backchannel coordination among major powers also helped ease market fears. It appeared that global actors were aiming to de-escalate, not escalate — calming investor nerves and muting the instinctive rush to gold. What Could Trigger a Gold Surge? The most likely trigger for a sharp spike in gold would be: The closure of the Strait of Hormuz, threatening global energy shipping, or A full-scale confrontation between the U.S. and Iran, involving strategic military bases across the Gulf region. Only then might gold reclaim its status as the ultimate safe haven and guardian of wealth. Until such a spark ignites the markets, however, gold is likely to remain subdued, quietly waiting for a larger geopolitical shock to fuel a true breakout rally. 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 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 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
See - Sada Elbalad
4 hours ago
- See - Sada Elbalad
Counterfeit Imported Gold Bars Seized in Egyptian Markets
Waleed Farouk In a striking incident that highlights the risks of trading in unverified precious metals, Egyptian security authorities—working in coordination with several local gold traders—have apprehended an individual in possession of counterfeit imported gold bars that he attempted to pass off as genuine within the local market. The incident took place when the suspect approached a gold jewelry shop in Nasr City, Cairo, offering a batch of gold bars that appeared, at first glance, to meet standard specifications in both weight and appearance. The man claimed the bars had been imported from abroad. However, during a routine technical examination using precision measurement and calibration tools, the dealer discovered that the bars were in fact made of copper, coated with a thin layer of gold to mimic the look of solid gold. Upon confirming the fraud, the dealer immediately alerted the authorities, who arrived at the scene promptly. A formal police report was filed, and the suspect was taken to the police station for questioning and legal proceedings. Commenting on the matter, Abdel Aal Salima, Deputy Head of the Gold Division at the Kafr El-Sheikh Chamber of Commerce, told "Eyar 24" that buyers and traders must exercise extreme caution when dealing with unverified sources, especially amid a rise in fraud cases driven by soaring gold prices both globally and locally. He further called for stricter customs and technical oversight on imported precious metals—particularly gold bars—to ensure compliance with standards set by Egypt's Assay and Weights Authority. A security source confirmed that investigations are ongoing, with efforts underway to identify other members of a potential network behind the smuggling of these fake bars into the market. Preliminary findings suggest a coordinated attempt to flood the Egyptian gold market with substandard products, aiming to exploit the growing demand for gold as a safe investment haven. 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 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 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
See - Sada Elbalad
4 hours ago
- See - Sada Elbalad
Gold Prices Steady Locally and Globally Amid Fed Rate Cut Uncertainty and Washington Tensions
Waleed Farouk Gold prices in the local market remained stable during Thursday's trading session, coinciding with a slight uptick in global spot prices. The stability comes as the U.S. dollar index and Treasury yields weakened, amid growing divergence between Federal Reserve Chair Jerome Powell and former President Donald Trump over the timing of interest rate cuts. According to data from the 'iSagha' gold trading platform, the price of 21-karat gold held steady at EGP 4,705 per gram, while the global spot price of gold rose by just $1, reaching $3,332 per ounce. Other domestic price levels included: 24-karat gold: EGP 5,377 per gram 18-karat gold: EGP 4,033 per gram 14-karat gold: EGP 3,137 per gram Gold sovereign: EGP 37,640 Gold had seen a minor increase of EGP 5 on Wednesday, with the 21-karat gram starting at EGP 4,700 and closing at EGP 4,705. Globally, gold gained $14 during that session, rising from $3,317 to $3,331 per ounce. Despite investor interest shifting towards equities, gold prices have remained relatively steady both locally and internationally. This is largely attributed to weakening confidence in the U.S. dollar, driven by mixed and often conflicting signals from U.S. monetary policy. Markets are currently focused on when and how quickly the Federal Reserve may begin cutting interest rates, bringing economic data back into the spotlight as a major influence on monetary policy decisions. On Wednesday, Fed Chair Jerome Powell concluded his semi-annual testimony before Congress, where he was grilled over the central bank's monetary policy report. While several global central banks have already begun easing rates in response to cooling inflation, the Federal Reserve has maintained its benchmark interest rate in the range of 4.25%–4.50% throughout this year. With inflation now approaching the Fed's 2% target, debate has intensified over the timing of the next rate cut. Recent U.S. economic data, including the Consumer Confidence Index released on Tuesday and New Home Sales data released on Wednesday, point to increasing economic strain. However, Powell remains concerned about the inflationary risks of tariffs, which he believes may take time to fully materialize. Durable Goods Orders Jump More Than Expected On Thursday, the U.S. Census Bureau reported that durable goods orders rose by 16.4% in May, equivalent to $48.3 billion, bringing the total to $343.6 billion. This followed a revised 6.6% decline in April, and far exceeded market expectations of an 8.5% increase. The report added: 'Excluding transportation, new orders rose 0.5%. Excluding defense, orders rose 15.5%.' The increase was led by transportation equipment, which rose for the fifth time in six months, surging by 48.3% to $145.4 billion. The U.S. Department of Labor also reported a drop in initial jobless claims, which fell to 236,000 for the week ending June 21, down from a revised 246,000 the previous week. However, continuing claims rose by 37,000, reaching 1.974 million for the week ending June 14. The insured unemployment rate remained unchanged at 1.3%, and the four-week moving average dropped by 750 to 245,000. Trump vs. Powell Former President Donald Trump addressed the media Wednesday at the NATO Summit, touching on several issues, including the state of the U.S. economy. He once again criticized Fed Chair Powell for being 'too slow to cut interest rates,' stating: 'Fortunately, he'll be gone. I think he's been very bad.' Geopolitical Calm Reduces Demand for Safe-Haven Assets Geopolitical risk has also subsided for now, as the ceasefire between Israel and Iran continues for a third consecutive day. While the situation remains fragile, the absence of further escalation has led to weaker safe-haven demand for gold and precious metals. Consequently, market attention has shifted back to macroeconomic indicators and monetary policy, which are likely to drive the next phase of movement in gold prices. A key data point to watch is Friday's release of the U.S. Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge. Any soft reading could revive expectations of near-term rate cuts — and give gold a strong bullish impulse. 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 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 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
