Gold Rises Locally and Globally Amid U.S. Tariff Dispute on Swiss Bullion
Gold prices in the local market posted modest gains over the past week, in tandem with a rise in global spot prices, as the international market experienced sharp volatility following reports that the United States would impose tariffs on imported gold bullion—news later officially denied by the U.S. administration.
Gold rose by 0.4%, with 21-karat gaining EGP 20 over the week, climbing from EGP 4,600 to EGP 4,620 per gram. In contrast, global spot gold recorded gains of about 1%, advancing from $3,363 to $3,397 per ounce.
The price of 24-karat gold reached EGP 5,280, 18-karat stood at EGP 3,960, and 14-karat at EGP 3,080, while the gold pound coin was priced at around EGP 36,960.
Confusion over the U.S. stance on tariffs for Swiss bullion remains a key factor influencing market sentiment, with any new developments likely to quickly impact local prices.
On July 31, the U.S. Customs and Border Protection agency issued a letter stating that imports of gold bullion in one-kilogram and 100-ounce sizes would not be exempt from tariffs, subjecting them to a 39% import duty from Switzerland—the world's largest gold refining hub. The decision shocked the markets, disrupted global supply chains, and threatened around $24 billion of Swiss gold exports to the U.S.
The move prompted some Swiss refineries to suspend or reduce shipments. While the White House dismissed the reports as 'misleading' and pledged to issue an executive order to clarify the situation, market anxiety persisted.
Gold futures in New York spiked to $3,534 per ounce before retreating to $3,497, while prices in London remained largely steady, widening the spread between the two markets to more than $100. Analysts warn that a sustained gap could reshape global gold flows and diminish the appeal of the COMEX exchange to international investors.
High-purity bullion imported from Switzerland is used to back financial contracts traded on COMEX, meaning any customs restrictions pose a direct threat to the market's infrastructure.
Christoph Wild, President of the Swiss Precious Metals Producers and Traders Association, described the tariffs as 'a new slap' to trade relations with the U.S., warning of their impact on the market's ability to meet rising global demand.
On the economic front, weak U.S. data bolstered market bets that the Federal Reserve will cut interest rates by 25 basis points at its September meeting, after the nonfarm payrolls report showed a slowdown in hiring and the ISM services index indicated contraction in the sector.
However, inflation remains the key factor: the prices-paid index in the services sector rose to its highest level since November 2022, potentially keeping the Fed in a balancing act between controlling inflation and supporting employment.
Next week's data releases include the Consumer Price Index, Producer Price Index, retail sales, jobless claims, and speeches from several Fed officials.
On Thursday, the U.S. Department of Labor reported that initial jobless claims rose to 228,000, compared with expectations of 221,000 and the previous reading of 218,000, while continuing claims reached 1.97 million, the highest since November 2021.
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
Videos & Features
Story behind Trending Jessica Radcliffe Death Video
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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
8 hours ago
- Daily News Egypt
Simplified tax system ‘permanent measure' to support small enterprises: ETA head
Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), affirmed that Law No. 6 of 2025—covering enterprises with annual revenues not exceeding EGP 20m—marks a key step in the state's drive to support small and micro-enterprises, encourage formalisation, and ensure their long-term sustainability. She stressed that the simplified tax system introduced under the law is permanent and not linked to any expiry date, enabling taxpayers to plan with confidence. Its primary aim, she said, is to streamline procedures and continuously reduce tax burdens, reflecting the state's commitment to a secure, investment-friendly business climate. Abdel Aal explained that the law adopts a graduated tax rate structure, starting from 0.4% for enterprises with annual revenues below EGP 500,000 and reaching 1.5% for those under EGP 20m. Businesses joining the system enjoy a five-year exemption from tax audits from the date of enrolment, along with exemptions from capital gains tax on fixed asset sales, dividend tax, state resource development fees, stamp duty, and registration and notarisation fees for incorporation contracts or business-related land registration. They are also exempt from the withholding or advance income tax payment mechanism. VAT returns are to be filed quarterly instead of monthly, while payroll tax returns are submitted annually, with registration and payment procedures simplified and no requirement for complex accounting records or lengthy returns. She noted that the ETA is committed to providing free technical and technological support to help enterprises join its electronic systems, supplying point-of-sale devices, and offering ongoing consultancy services. Abdel Aal emphasised that participation in the simplified system ensures tax stability, safeguards taxpayer rights, and encourages business expansion, adding that the authority will continue to deliver technical and awareness support to help the tax community fully benefit from these facilitation measures.
Daily News Egypt
8 hours ago
- Daily News Egypt
Egypt, China ink $1bn agreement for Sailun tire plant in SCZONE
Egypt's Prime Minister Mostafa Madbouly on Wednesday witnessed the signing of an agreement between China's Sailun Group and TEDA Egypt to establish a major tire manufacturing plant in the Suez Canal Economic Zone (SCZONE). The ceremony, held at the government headquarters in the New Administrative Capital, was attended by Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, and Walid Gamal El-Din, Chairperson of SCZONE. The contract was signed by Cao Hui, CEO of TEDA Egypt, and Shi Shaohong, Chairperson of Sailun Tire Group. The $1bn (around EGP 50bn) project will be developed in three phases over a 350,000 sqm site within the Sokhna Integrated Zone of SCZONE, managed by TEDA Egypt. Construction is scheduled to be completed within three years. The first phase—set for completion in 2026—will produce 3 million passenger car tires and 600,000 truck and bus tires annually. Once fully operational, the plant's total annual capacity is expected to exceed 10 million tires, serving both domestic demand and export markets. Madbouly said the project reflects Egypt's commitment to localising the automotive industry and its related supply chains, underscoring the role of public-private partnerships in achieving regional leadership within a short timeframe. He highlighted national infrastructure projects—such as roads, tunnels, and ports—that enhance SCZONE's readiness to attract foreign direct investment and connect production hubs to global markets. Gamal El-Din stressed that tire manufacturing is a key pillar of SCZONE's automotive localisation strategy. He noted that the Authority is working to establish fully integrated industrial clusters, in line with Egypt's national automotive manufacturing strategy launched from the Integrated East Port Said Zone. The SCZONE Chairperson also said the project follows a recent promotional tour to China, which included site visits and meetings with leading automotive and component manufacturers—particularly in electric vehicles and batteries. These engagements aimed to exchange knowledge on advanced technologies and assess investment requirements such as energy, utilities, land, and workforce needs. Sailun Group is among China's largest tire manufacturers, producing a wide range of products for different vehicle types. The company operates factories in China and Vietnam, with an annual capacity of over 26.6 million TBR (Truck and Bus Radial) tires, 88 million PCR (Passenger Car Radial) tires, and 310,000 tonnes of OTR (Off-The-Road) tires. Its sales and logistics network spans more than 180 countries. The planned SCZONE facility will serve as a central regional hub, supplying both the Egyptian market and neighbouring markets.
See - Sada Elbalad
14 hours ago
- See - Sada Elbalad
Central Bank of Egypt Eases Rules on Credit Card Use Abroad
Taarek Refaat The Central Bank of Egypt (CBE) has officially relaxed a key restriction on the use of credit cards abroad, signaling a shift in the country's foreign exchange management policies following recent economic reforms. In a decision announced this week, the CBE canceled a clause from a previous directive issued in October 2023. The now-removed clause had required banks to track the international use of credit cards by verifying exit and entry stamps on customers' passports within 90 days of activating their cards for international use. Under the previous rule, customers had to submit travel documentation to confirm they were physically abroad when using their cards, as a measure to control foreign currency outflows. Failure to do so could result in card restrictions or penalties. With the new directive in place, customers are no longer obligated to provide banks with such documentation. Egyptian banks will continue to allow credit card usage abroad, applying foreign exchange fees as usual, but without demanding proof of travel. Policy Shift Reflects Improved Currency Conditions This regulatory easing follows the unification of Egypt's exchange rate in March 2025, a move that aligned the official and parallel market rates and helped stabilize the country's foreign currency environment. As a result, the stringent controls previously considered necessary to prevent misuse of foreign exchange channels have become less relevant. Economic analysts view the move as part of a broader strategy to normalize banking operations and restore confidence in the financial sector, especially after years of tight currency controls and capital management regulations. 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 Videos & Features Story behind Trending Jessica Radcliffe Death Video 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 Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt News The Jessica Radcliffe Orca Attack? 100% Fake and AI-Generated
