Gold Declines Locally and Globally Amid Dollar Strength and U.S. Tariff Concerns
Gold prices fell in both local and global markets during Monday's trading, pressured by a strengthening U.S. dollar and growing anticipation ahead of new American tariffs scheduled to take effect this Wednesday.
Gold dropped by approximately EGP 25 in the local market compared to Saturday's closing, with 21-karat gold falling to EGP 4,615 per gram, while the global ounce price declined by $34 to around $3,303.
The 24-karat gold gram recorded EGP 5,274, while 18-karat stood at EGP 3,956, and 14-karat at EGP 3,077. The price of a gold pound (8 grams of 21k) reached EGP 36,920.
This decline follows a week of gains in the local market, where gold rose by EGP 30 last week from EGP 4,610 to EGP 4,640 per gram. On the global front, gold rose from $3,274 to $3,337 per ounce during that same period.
The current retreat is driven by a stronger dollar index, alongside increasing market optimism over potential trade deals before the U.S. tariff deadline. U.S. bond yields have also risen following robust labor market data released late last week.
Persistently high interest rates in the U.S. are also exerting downward pressure on gold, which, as a non-yielding asset, becomes less attractive to investors in a tight monetary environment.
Trump's Tariff Threats Fuel Uncertainty, Offer Medium-Term Support for Gold
In this context, EmBaby noted that recent threats by U.S. President Donald Trump to impose an additional 10% tariff on countries aligning with the BRICS bloc could increase global economic uncertainty — a factor that could, paradoxically, support gold's safe-haven appeal in the medium term.
On Sunday, speaking from Morristown Airport, Trump said that most trade agreements would be finalized or communicated by July 9, with new tariffs taking effect on August 1. He also posted on Truth Social:
"Any country aligning with the anti-American policies of BRICS will be charged an additional 10% tariff, without exception."
These remarks come as the BRICS summit takes place in Rio de Janeiro, where member states — Brazil, Russia, India, China, and South Africa — are advancing efforts to strengthen economic cooperation and reduce reliance on the U.S. dollar, a process known as 'de-dollarization.'
Fed Minutes in Focus as Fears of Weakening Demand Mount
Meanwhile, investors are closely watching for the release of the Federal Reserve's meeting minutes this Wednesday, which will shed light on the rationale behind the decision to maintain interest rates in June within the 4.25%–4.50% range. The minutes will also provide insights into the Fed's outlook for the U.S. economy and future policy moves.
According to the World Gold Council's June Gold Demand Trends report, global demand for the yellow metal remains solid, especially amid escalating geopolitical tensions between the U.S. and China.
However, Goldman Sachs has warned of additional downside risks to gold in the event of declining central bank purchases or if continued economic strength pushes the Fed toward further monetary tightening — both scenarios seen as unfavorable for gold prices.
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
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
News
Flights suspended at Port Sudan Airport after Drone Attacks
News
"Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence"
Videos & Features
Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
Technology
50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
See - Sada Elbalad
21 minutes ago
- See - Sada Elbalad
US to Impose 30% Tariffs on Mexico, EU from 1 August
Israa Farhan The United States is set to introduce sweeping new tariffs on imports from Mexico and the European Union starting 1 August 2025, following an announcement from former President Donald Trump. In official correspondence issued on Saturday, Trump notified both Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen that a 30% tariff would be applied to all exports from their respective regions to the US. In the letter to President Sheinbaum, Trump confirmed that the new 30% tariff would apply independently of existing sector-specific duties. He also warned that any attempts to bypass the new tariffs through transshipment would result in even higher charges. Additionally, Trump cautioned that if Mexico increases its tariffs, the US would respond by adding the same percentage increase on top of the 30% base rate. A nearly identical letter was sent to Ursula von der Leyen, in which Trump stated that the 30% rate was still insufficient to fully address what he described as an ongoing trade imbalance between the US and the European Union. The EU responded swiftly. European Commission President von der Leyen reiterated the bloc's willingness to work toward a resolution before the 1 August deadline. However, she also made clear that the EU would act decisively to defend its economic interests if necessary. Von der Leyen warned that such tariffs could severely damage critical transatlantic supply chains and negatively impact industries, consumers, and patients on both sides of the Atlantic. 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 Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters 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 News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
Al-Ahram Weekly
an hour ago
- Al-Ahram Weekly
Trump says Mexico and EU to face 30% tariff from 1 Aug - Economy
President Donald Trump on Saturday targeted Mexico and the European Union with steep 30 percent tariffs, dramatically raising the stakes in already tense negotiations with two of the largest US trading partners. Both sets of duties would take effect 1 August, Trump said in formal letters posted to his Truth Social platform. The president cited Mexico's role in illicit drugs flowing into the United States and a trade imbalance with the EU as meriting the tariff threat. The EU swiftly slammed the announcement, warning that it would disrupt supply chains, but insisted it would continue talks on a deal ahead of the deadline. Since returning to the presidency in January, Trump has unleashed sweeping tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn. But his administration is coming under pressure to secure deals with trading partners after promising a flurry of agreements. So far, US officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China. The fresh duties for Mexico announced by Trump would be higher than the 25 percent levy he imposed on Mexican goods earlier this year, although products entering the United States under the US-Mexico-Canada Agreement (USMCA) are exempted. "Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough," Trump said in his letter to Mexican President Claudia Sheinbaum. "Starting 1 August 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States." The EU tariff is also markedly steeper than the 20 percent levy Trump unveiled in April, as negotiations with the bloc continue. "Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic," European Commission chief Ursula von der Leyen said in a statement, in reply to Trump's letter to her. "We remain ready to continue working towards an agreement by 1 August. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required," she added. The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10 percent on Wednesday, but Trump pushed back the deadline to 1 August. Since the start of the week, Trump has sent out letters to more than 20 countries with updated tariffs for each, including a 35 percent levy for Canada. A US official has told AFP that the USMCA exemption was expected to remain for Canada. Brussels said Friday that it was ready to strike a deal with Washington to prevent the return of 20 percent levies. The EU has prepared retaliatory duties on US goods worth around 21 billion euros after Trump also slapped separate tariffs on steel and aluminum imports earlier this year, and they are suspended until July 14. European officials have not made any move to extend the suspension but could do it quickly if needed. "Despite all the movement toward a deal, this threat shows the EU is in the same camp of uncertainty as almost every other country in the world," said Josh Lipsky, chair of international economics at the Atlantic Council. He told AFP that the path forward now depends on how the EU responds, calling it "one of the most precarious moments of the trade war so far." Follow us on: Facebook Instagram Whatsapp Short link:
Daily News Egypt
3 hours ago
- Daily News Egypt
Cash, technology, and the quest for balance: Why going fully offline is not the answer
In today's fast-paced digital world, electronic payments and digital banking have become an integral part of daily life, offering unmatched speed and convenience while steadily reducing reliance on cash. Yet over-reliance on technology in the financial sector carries its own risks—particularly in times of crisis or natural disaster, when connectivity and banking systems can be disrupted. A recent example emerged in Egypt when a fire broke out at the Ramses Central Exchange, triggering a temporary internet and network outage. Some services are still recovering, including the stock exchange and certain banking operations, with ongoing efforts to restore full functionality. In response, the Central Bank of Egypt (CBE) acted swiftly by extending operating hours at select branches to improve customer access to in-person services. It also temporarily increased daily cash withdrawal limits for individuals and businesses to EGP 500,000, up from EGP 250,000, until the situation stabilises. The incident reignited public debate, with some voices advocating for a full return to cash—or at least a significant retreat from digital reliance—arguing that cash remains the only truly resilient medium under all circumstances. While this view is understandable, it overlooks the significant downsides of an all-cash economy: greater exposure to theft, time-consuming transactions, higher operational costs, and difficulty functioning in an increasingly digitised world. It also runs counter to one of the Central Bank's national strategic goals: reducing cash dependency and promoting financial inclusion. This is why expanding digital banking services and investing in secure technology infrastructure remains the wiser, more sustainable approach—provided it is managed responsibly. What we truly need is a well-defined emergency response plan to strike the right balance between cash and technology, ensuring business continuity without leaning too heavily in either direction. Even countries with more advanced technological ecosystems are not immune to disruption. In 2018, several banks in Finland faced outages that temporarily halted electronic payments, prompting a short-term return to cash. More recently, hurricanes and floods in the US knocked out power grids and disabled digital systems, forcing affected communities to rely on physical cash as a lifeline. These global examples highlight a critical lesson: the importance of maintaining strong, independent backup systems that can be activated in times of crisis. Such systems should be stress-tested regularly, with clear recovery timelines aligned to global standards. In Egypt, all banks already operate under risk management frameworks to address tech-related threats and cybersecurity risks, including protocols for relocating operations to alternate premises if needed. Yet achieving full resilience requires a coordinated, top-tier response from the entire ecosystem—including service providers and telecom operators. This means aligning with international standards, regularly updating systems, educating users on emergency procedures, investing in reliable internet infrastructure, and ensuring backup power sources are in place. Governments, too, have an essential role to play by enacting user protection laws, enforcing stringent security standards, and mandating service continuity. We should not fall once again for the myth that 'cash is king.' A full return to cash is not the solution. Nor is it sensible to abandon the transformative advantages of technology. The smartest path forward lies in balance: investing in resilient infrastructure, strengthening cybersecurity, keeping cash as a strategic backup, and raising public awareness. This way, we can build systems that are resilient, inclusive, and ready for the future. Mohamed Abdel Aal – Banking expert
