Latest news with #U.S.ProducerPriceIndex
See - Sada Elbalad
17-07-2025
- Business
- See - Sada Elbalad
Local Market Calm, But Retail Sales See Seasonal Boost
Waleed Farouk The local bullion market continues to experience subdued activity due to a relative calm in global markets. Retail outlets have largely relied on recycled gold for inventory, especially as bullion traded at slightly lower exchange rates compared to the official rate — about 30 piastres lower in recent days. However, with Thursday's trading session, the gap narrowed, bringing market exchange rates in line with official rates as the sector moved toward exporting raw gold to generate foreign currency liquidity. On the retail front, demand is seeing a seasonal uptick with the approach of the summer wedding and engagement season. Market estimates suggest that around 30% of current demand is directed toward gold jewelry, while the remaining 70% is focused on bullion for savings or investment, particularly with prices stabilizing in the 4620–4660 EGP range for 21-karat gold since the beginning of July. Stronger Dollar Dampens Gold Demand The U.S. dollar regained strength following comments from former President Donald Trump, who denied intentions to dismiss Fed Chair Jerome Powell. The reassurance eased market anxiety and pushed the dollar toward its highest level since June 23. Simultaneously, several Federal Reserve officials signaled caution regarding premature monetary easing. Dallas Fed President Lorie Logan voiced concerns over inflationary risks stemming from tariffs, while New York Fed President John Williams stated that the current economic conditions do not justify immediate policy changes. These remarks prompted markets to dial back expectations for a rate cut. The likelihood of a 25-basis-point rate cut in September dropped to 63%, down from 78% a week ago, according to CME FedWatch data. Geopolitical Tensions Offer Underlying Support Amid Fragile Balance Despite the decline, gold remains supported by geopolitical tensions and global trade uncertainties, particularly after Trump announced new tariffs on 25 countries effective August 1 — a move that heightens global anxiety and renews safe-haven interest in gold. On the data front, U.S. Producer Price Index (PPI) data came in below expectations, showing no monthly change for June versus a forecast of +0.1%. Year-on-year growth was 2.3%, below the expected 2.5%. The core PPI, excluding food and energy, also registered flat monthly and 2.6% annual growth, indicating softening price pressures from the supply side. On the flip side, industrial production rose by 0.3%, surpassing forecasts and suggesting economic activity remains resilient despite easing inflation. Nonetheless, Tuesday's Consumer Price Index (CPI) report showed core inflation still running hotter than expected at 2.9%, reinforcing pressure on gold due to its inverse relationship with interest rates and the dollar. the gold market is navigating a fragile equilibrium, caught between dollar strength and potential rate stability on one hand, and global tensions and trade barriers on the other. The next moves in gold will likely hinge on economic and political cues from Washington over the coming weeks. 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 Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle 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 Sports Get to Know 2025 WWE Evolution Results
See - Sada Elbalad
16-07-2025
- Business
- See - Sada Elbalad
Silver Prices Rise Locally as Market Eyes U.S. Inflation and Tight Global Supply
Waleed Farouk Silver prices rose in the local Egyptian market on Wednesday, supported by the relative stability of the global spot price, despite a minor decline following the release of weaker-than-expected U.S. industrial inflation data for June. The data kept pressure on the U.S. dollar and boosted demand for non-yielding assets like silver. According to a report by the Safe Haven Hub, the price of 800-purity silver rose from EGP 52 to EGP 53 per gram. Meanwhile, 999-purity silver reached EGP 66 per gram, 925-purity stood at EGP 61, and a 925 silver pound was priced at around EGP 488. Global Silver Eases Slightly After Hitting 14-Year Highs Globally, silver retreated from $38.32 to $37.65 per ounce in a normal corrective move after nearing a 14-year high of $39.13 earlier this week, as some investors moved to take profits. Mixed U.S. Inflation Data Keeps Dollar Under Pressure The U.S. Producer Price Index (PPI) showed notable deceleration in June, with headline PPI registering 0.0% month-on-month, missing expectations of 0.2%. Year-on-year, it fell to 2.3%, down from 2.6% in May. Core PPI (excluding food and energy) also came in weaker than expected at 0.0% monthly and 2.6% annually. This followed Tuesday's Consumer Price Index (CPI) data, which showed headline inflation in line with forecasts but a slightly lower core reading. This mixed picture reduced the likelihood of imminent rate cuts, weakening the dollar and supporting demand for hedging assets like silver. Rising Industrial Demand Meets Growing Supply Deficit Silver has been on a strong upward trend since April, fueled by multiple factors — intensifying global trade tensions, new U.S. tariffs, supply shortfalls in key markets, rising global interest rates, and tightening liquidity in metals exchanges like the LME. A report from the Silver Institute revealed that silver-backed ETFs held over 1.13 billion ounces as of June 2025, with net inflows of 95 million ounces in the first half of the year — already surpassing full-year 2024 levels. The Institute also projected industrial demand to reach 677.4 million ounces in 2025, driven largely by booming demand from green industries, particularly solar panels and photovoltaic technologies, amid rapid global growth in clean energy projects. Fifth Consecutive Year of Market Deficit Despite surging demand, silver supply remains under severe pressure due to production disruptions in major mining countries like Mexico and Russia, along with declining output from primary mines. Over 70% of global silver supply now comes as a byproduct of other metals. The market deficit is estimated at 182 million ounces for 2024, with an additional 117.6 million ounces expected in 2025. Above-ground inventories are nearing critical levels, while U.S. premiums for physical silver continue to rise. Silver Eyes $50 Per Ounce as Breakout Momentum Builds After breaking above the $35 level in June, analysts believe silver is now on track to test $50 per ounce in the near term, driven by strong investment demand and limited available supply — currently estimated at just 155 million ounces. Analysts at Citi Bank forecast silver will continue its ascent over the next 12 months, projecting it may reach $40, and possibly $46 by Q3 2025, citing sustained trade tensions and expanding industrial demand. Market Fundamentals Support More Upside Silver remains significantly undervalued based on historical ratios. The current gold-to-silver ratio stands at 87.3, well above the historical average of 53. A return to this average — assuming stable gold prices — would imply a silver price of around $63.30, or a 65% increase from current levels. Adjusted for inflation, silver's all-time high of 1980 would equal $197 today, and its 2011 rally peak would be $71, indicating considerable upside from the current price of $38.40 per ounce. Short Position Overhang and Risk of a Short Squeeze Despite the rally, global investment banks maintain large short positions in silver futures. As of July, short positions stood at 52,324 contracts, equivalent to 262 million ounces — roughly one-third of the world's annual silver production. Many of these contracts are unbacked "paper silver," posing a growing risk of a short squeeze if prices keep rising. This could force investors to cover their positions rapidly, potentially triggering a sharp price spike. The risk is heightened by the high ratio of paper-to-physical silver, currently estimated at 375 paper ounces for every one physical ounce available — a precarious setup that could lead to an explosive rally if physical demand surges. Asian Demand Boosts Market Outlook India imported 197 tonnes of silver in June 2025, up 81% year-on-year. However, this was lower than May's record of 544 tonnes, indicating a modest cooldown after an unprecedented buying spree. Silver Reclaims Its Place as a Strategic Asset With its dual role as a safe-haven and industrial metal, silver is proving itself not just a precious commodity but a strategic asset. Amid tightening supply, robust industrial demand, and financial market uncertainty, silver may emerge as the surprise outperformer of H2 2025 — possibly even outshining gold. 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 Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle 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
Business Recorder
16-07-2025
- Business
- Business Recorder
Gold rebounds as US dollar, Treasury yields retreat
Gold rose on Wednesday, helped by a slight pullback in the dollar and bond yields, while investors digested data showing an increase in U.S. consumer prices last month and waited for further clarity on U.S. President Donald Trump's trade policy. Spot gold was up 0.5% at $3,337.29 per ounce, as of 0550 GMT. U.S. gold futures edged 0.2% higher to $3,343.90. The dollar index eased from a one-month peak, making gold more attractive for other currency holders. Benchmark U.S. 10-year Treasury yields retreated from multi-week highs. 'Many countries are still negotiating with the U.S. on the tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens,' said Brian Lan, managing director at GoldSilver Central, Singapore. Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1. However, Trump said on Monday he was open to further negotiations. U.S. consumer prices increased in June by the most in five months amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation and potentially keeping the Federal Reserve on the sidelines until September. Gold firms as trade tensions buoy safe-haven demand Following the data, Trump said that consumer prices were low and the Fed should bring down interest rates now. The U.S. central bank will probably need to leave rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs, Dallas Fed Bank President Lorie Logan said. Gold, often considered a safe haven during times of economic uncertainties, tends to do well in a low-interest-rate environment. Market focus now shifts to the U.S. Producer Price Index data due at 1230 GMT on Wednesday for more cues. Elsewhere, spot silver gained 0.3% to $37.83 per ounce. Platinum rose 0.3% to $1,375.63 and palladium climbed 0.2% to $1,208.91.
CNBC
16-07-2025
- Business
- CNBC
Gold ekes out gain as focus turns to US tariff negotiations
Gold prices rose on Wednesday as investors digested data showing an increase in U.S. consumer prices last month and waited for further clarity on U.S. President Donald Trump's trade policy. Spot gold was up 0.4% at $3,334.12 per ounce, as of 0401 GMT. U.S. gold futures edged 0.1% higher to $3,340.90. "Gold at this moment is consolidating with a slight downward bias, especially with a stronger dollar," said Brian Lan, managing director at GoldSilver Central, Singapore. "However, many countries are still negotiating with the U.S. on the tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens." Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1. However, Trump said on Monday he was open to further negotiations. U.S. consumer prices increased in June by the most in five months amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation and potentially keeping the Federal Reserve on the sidelines until September. Following the data, Trump said that consumer prices were low and the Fed should bring down interest rates now. The U.S. central bank will probably need to leave rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs, Dallas Fed Bank President Lorie Logan said. Gold, often considered a safe haven during times of economic uncertainties, tends to do well in a low-interest-rate environment. Market focus now shifts to the U.S. Producer Price Index data due at 1230 GMT on Wednesday for more cues. Keeping gold's gains in check, the dollar and benchmark U.S. 10-year Treasury yields held near multi-week highs. Elsewhere, spot silver gained 0.3% to $37.82 per ounce. Platinum rose 0.2% to $1,379.46 and palladium climbed 0.4% to $1,210.66.
See - Sada Elbalad
12-06-2025
- Business
- See - Sada Elbalad
Gold Shines Amid Rising Geopolitical Tensions and a Weaker Dollar
Waleed Farouk 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
