Latest news with #WaleedFarouk
See - Sada Elbalad
38 minutes ago
- Business
- See - Sada Elbalad
Fed Hints at Monetary Easing as Gold Awaits July Clarity
Waleed Farouk Gold prices saw a slight dip in local markets during Saturday trading, coinciding with the weekend closure of global exchanges. This came after a modest 0.1% decline in international spot prices over the past week, which was marked by volatility and conflicting pressures from monetary policies and geopolitical tensions. Gold lost around EGP 5 per gram on Saturday compared to Friday's close, with 21-karat gold priced at EGP 4,645 per gram. Meanwhile, spot gold dropped by approximately $5 per ounce during the week to settle at $3,350. The price of 24-karat gold recorded EGP 5,309 per gram, 18-karat gold stood at EGP 3,981, while 14-karat gold reached EGP 3,097. The gold pound was priced at EGP 37,160. On Friday, gold prices had climbed by EGP 10 during the session, with 21-karat gold opening at EGP 4,640 and closing at EGP 4,650. Globally, spot prices rose by $10, opening at $3,340 and closing at $3,350 per ounce. Last week, global markets remained in a state of cautious anticipation, driven by speculation of potential political interference in the U.S. Federal Reserve's operations and renewed trade tensions, particularly from the U.S. toward the EU and Asian economies. The U.S. Dollar Index slipped by 0.16% on Friday to 98.462 points, despite posting a 0.61% weekly gain. This decline came amid a week of sharp fluctuations triggered by mixed inflation data, political pressure on Fed Chair Jerome Powell, and escalating trade frictions. While the Consumer Price Index rose, the stagnation in the Producer Price Index cast doubt on the Fed's monetary trajectory, especially as inflation risks from tariffs persist — reducing the likelihood of a near-term rate cut. Fed Governor Christopher Waller expressed support for a rate cut in July, citing weaker labor data as justification for a preemptive move. Concerns over the Federal Reserve's independence resurfaced following reports that President Donald Trump may be considering replacing Fed Chair Jerome Powell. Although officially denied, such speculation undermines market confidence in the neutrality of U.S. monetary policy, reinforcing gold's status as a safe haven. Adding to this, the University of Michigan's July survey revealed an improvement in U.S. consumer sentiment alongside a slight decline in long-term inflation expectations. This potentially provides the Fed with greater flexibility in its policy approach. The survey showed five-year inflation expectations falling to 3.6% from a previous 4%, while one-year expectations dropped to 4.4% from 5%. Market expectations currently indicate a total of 45 basis points in rate cuts before year-end — a backdrop that favors gold as a store of value in a low-yield environment. However, the Fed's cautious stance, with only two rate cuts projected in 2025, continues to limit gold's momentum as a non-yielding asset. Trump's renewed threats to impose tariffs on EU imports, coupled with stalled trade negotiations with Japan and Indonesia, have added further uncertainty to the markets. This has pushed more investors into gold for safety. Despite gold's relative resilience amid high Treasury yields and a strong dollar, analysts warn of potential pullbacks due to profit-taking after heavy speculative buying in recent months. Still, a major sell-off is seen as unlikely. The dollar remains supported by expectations that the Fed will hold rates steady throughout the summer unless there is a significant deterioration in economic data — a scenario that diminishes prospects for gold in the short term. Over the longer term, political tensions may ultimately favor gold. Eroding trust in U.S. financial institutions, particularly in the context of Trump–Powell disputes, could weaken the dollar and drive further inflows into precious metals. Looking ahead, next week's U.S. economic calendar includes housing data, global flash PMI readings from S&P, jobless claims, and durable goods orders. Despite minor declines in both local and global gold prices, the yellow metal remains attractive as a hedge in an increasingly volatile world. U.S. monetary policy remains the most critical driver of gold's direction — balancing the strength of the dollar against the Fed's gradual shift toward easing. With rising geopolitical risks, uncertainty surrounding the Fed's leadership, and mixed consumer sentiment, gold is expected to maintain a prominent position in investor portfolios heading into Q3 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 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" Sports Get to Know 2025 WWE Evolution Results News Flights suspended at Port Sudan Airport after Drone Attacks Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
See - Sada Elbalad
39 minutes ago
- Business
- See - Sada Elbalad
India's Gold Market Remains Resilient Despite Jewelry Slowdown and Slumping Imports
Waleed Farouk Despite a seasonal lull in gold jewelry demand and June gold imports falling to a 14-month low, the Indian gold market continues to hold steady, supported by strong retail earnings and growing investment demand, according to Kavita Chacko, Head of Research at the World Gold Council. In her monthly report, Chacko noted that gold prices lost momentum by the end of June, recording only a marginal month-on-month increase of 0.3%. She explained that prices were initially supported in early June by a weaker US dollar, rising geopolitical tensions, lower US Treasury yields, and positive inflows into gold-backed exchange-traded funds (ETFs). However, a shift in investor sentiment toward riskier assets curbed the precious metal's gains. Gold Shows Strong Performance Year-to-Date Despite Pressures Gold prices have risen by 2% so far in July, fueled by renewed trade tensions, bringing the yellow metal's year-to-date gains in 2025 to 28% in US dollar terms. In the Indian market, gold ended June with a 0.7% monthly increase to ₹95,676 per 10 grams and continued its upward trend in July, rising by another 1% to ₹97,095. Jewelry Demand Slows, While Investment Appetite Grows Despite gold's strong price performance, high prices weighed on jewelry demand. "Jewelry demand declined following the end of the wedding season and the onset of the seasonal lull in June and early July," Chacko stated. "Higher prices also prompted consumers to defer discretionary purchases or shift toward more affordable alternatives such as lightweight, lower-karat, or gemstone-studded jewelry." Old jewelry exchanges also increased as a cost-saving measure, while investment demand for gold bars, coins, and simple chains—seen as semi-investment products due to their lower manufacturing costs—grew significantly, according to market reports. Jewelry Companies Report Profit Growth Despite Lower Volumes Although demand volume remained subdued, jewelry companies reported higher profits in the second quarter of the financial year. Major listed companies recorded annual revenue growth between 18% and 31%, driven by a 32% year-on-year increase in gold prices and seasonal demand during April and May. Gemstone-studded jewelry also gained popularity as a response to high prices, while digital channels and franchise networks expanded significantly. Leading companies opened between two and 19 new stores during the quarter. Gold ETFs Record Second-Highest Inflows Ever June saw a surge in investment demand, with gold ETFs recording net inflows of ₹20.8 billion (approximately USD 242 million)—the second-highest monthly inflow on record—driven by escalating geopolitical tensions in the Middle East. Total assets under management for Indian gold ETFs reached USD 7.5 billion, an 88% year-on-year increase, while holdings rose to 66.7 tonnes, including additions of 2 tonnes in June and 9 tonnes in the first half of 2025—marking the largest H1 increase on record. Investor participation grew sharply, with 280,000 new accounts opened in June alone, up 27% from May and 41% year-on-year, pushing the total number of gold ETF accounts to 7.65 million. This underscores the growing importance of gold as a strategic asset in Indian portfolios. RBI Resumes Gold Buying at Slower Pace On the sovereign front, the Reserve Bank of India resumed gold purchases in June, adding 0.4 tonnes after a three-month pause, bringing official gold reserves to a record high of 880 tonnes. However, RBI's buying pace has slowed significantly in 2025, with only 3.8 tonnes added in the first half of the year—the lowest H1 addition in six years, compared to 37.1 tonnes in H1 2024. This likely reflects a more cautious approach in response to elevated global gold prices. Nonetheless, gold's share in India's total foreign exchange reserves has risen to a record 12.1%, up from 8.7% a year earlier. High Prices Drive Sharp Drop in Imports Elevated prices also triggered a sharp decline in gold imports, which fell to their lowest level in 14 months in June, marking the third consecutive monthly drop. Import values declined to USD 1.8 billion, down 26% year-on-year and 28% month-on-month. Estimated volumes ranged between 19 and 24 tonnes, compared to 31 tonnes in May. Jewelry Demand Likely to Rebound Ahead of Festival Season Chacko expects jewelry demand to rebound starting mid-August with the onset of the festive season. Meanwhile, investment demand is likely to remain strong in the coming weeks, supported by geopolitical uncertainty and rising prices of other asset classes. 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" Sports Get to Know 2025 WWE Evolution Results News Flights suspended at Port Sudan Airport after Drone Attacks Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
See - Sada Elbalad
2 days ago
- Business
- See - Sada Elbalad
Despite Weak June Performance, China Ends First Half of 2025 with Strongest Gold Price Rally in Nine Years
Waleed Farouk According to a report by Ray Jia, Head of Research, China at the World Gold Council, China concluded the first half of 2025 with its strongest gold price performance in nine years. This was supported by robust investment demand and sustained central bank purchases, despite ongoing weakness in consumer and jewelry demand. Record Price Performance in H1 2025 The LBMA Gold Price PM in U.S. dollars rose by 23%, while the Shanghai Gold Benchmark Price (SHAUPM) in Chinese yuan climbed 21%, marking the best semi-annual performance since 2016. This strength was driven by a weaker U.S. dollar, escalating geopolitical risks, and continued central bank buying—factors highlighted by the World Gold Council's proprietary return attribution model. Persistent Weakness in Physical Demand Withdrawals from the Shanghai Gold Exchange (SGE) dropped 10% month-over-month in June to 90 tonnes. Total H1 withdrawals stood at 678 tonnes, down 18% year-over-year and 22% below the 10-year average. Elevated gold prices, declining consumer confidence, and ongoing restructuring of the jewelry sector weighed heavily on demand for gold products. Retailers remained cautious with inventory restocking due to high price levels. Even bar and coin investment saw a slowdown in June amid limited gold price fluctuations. Record Inflows into Gold ETFs Chinese gold-backed ETFs recorded positive inflows of CNY 1 billion (USD 137 million) in June. The funds attracted CNY 64 billion (USD 8.8 billion) in H1 2025—the highest on record. Total assets under management (AUM) rose to CNY 153 billion (USD 21 billion). Combined gold holdings surged 74% to reach 200 tonnes. Record Futures Market Activity Though SHFE gold futures trading volume dropped 39% in June to 380 tonnes per day, the H1 daily average reached 534 tonnes, an all-time high. High prices, market volatility, and geopolitical uncertainty drove investor activity in futures contracts. PBOC Continues Gold Buying The People's Bank of China (PBoC) added 2 tonnes of gold in June, marking its eighth consecutive month of purchases. Total H1 purchases reached 19 tonnes, bringing official reserves to 2,299 tonnes. The share of gold in total foreign reserves rose from 5.5% in December 2024 to 6.7% by June 2025. Imports Decline Chinese customs data showed net gold imports fell to 89 tonnes in May, down 21% month-over-month and 31% year-over-year. The decline reflects subdued physical demand and reduced withdrawals from the SGE during the same month. Outlook Consumer confidence and the restructuring of China's jewelry industry will likely continue to drag down physical gold demand in H2 2025. However, I believe investment demand for gold will remain strong, driven by global volatility, monetary policy shifts, and fluctuations in alternative asset performance. 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
2 days ago
- 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
3 days ago
- Business
- See - Sada Elbalad
Chairman of Shalateen Mining Company: Promising Gold Concentrations Discovered at "Hangaliya" Site
Waleed Farouk Dr. Hany Mostafa, Chairman of Shalateen Mining Company, announced that initial assay results from the "Hangaliya" site indicate promising gold concentrations, with analyses revealing an average gold content of approximately 18 grams per ton—a figure considered excellent in the mining industry. In televised remarks to Al Arabiya, Dr. Mostafa explained that these results were obtained after thorough testing and analysis of subsurface samples, as part of the company's preliminary exploration program in several promising areas of Egypt's Eastern Desert. 'This grade is one of the positive indicators that gives us great confidence in the site's potential,' he said, 'and it encourages us to move forward with the technical and economic evaluation phases, paving the way for more advanced drilling and commercial exploration activities.' The Shalateen Chairman confirmed that the next steps will include conducting extensive geophysical and geochemical surveys to accurately determine the extent of the mineralized body. A comprehensive feasibility study is also being prepared, covering both technical and financial estimates, to obtain the necessary approvals from the relevant authorities. He added:'We are committed to applying the highest standards of safety and environmental responsibility at every stage of the project, and we aim for our operations to maximize the value of Egypt's national mineral wealth.' 'The findings from the Hangaliya site give us a significant boost,' he continued, 'and confirm that we are on the right track toward unlocking new frontiers in Egypt's mining sector. This will enhance its contribution to GDP and create real job opportunities for Upper Egypt residents.' New Exploration Bids and Investment Plans Dr. Mostafa also revealed that the company is preparing to launch new gold mining tenders next month, which will be open to both international and local companies. These bids will be within Shalateen's concession area located between latitudes 22° and 24° south in the Eastern Desert. In a separate televised interview with Asharq Bloomberg, he disclosed that the company has allocated EGP 100 million for a self-funded, three-year exploration project at the Hangaliya and Umm Ud sites near Marsa Alam. He noted that initial indicators point to commercially viable discoveries, although it is still too early to determine the exact reserve size at this stage. Dihmit Industrial Complex in Aswan Regarding the industrial complex that the company is developing in Dihmit, Aswan, Mostafa said that construction is about 70% complete on the 1,420-feddan project, and he expects the complex to be fully operational by early next year at the latest. Once completed, he estimated that the facility would increase the company's gold production to 1.5 tons annually, up from the current output of about 1.2 tons. Ownership Structure Shalateen Mining Company is a joint venture in which the Egyptian Mineral Resources Authority (EMRA) holds a 35% stake, the National Service Projects Organization (NSPO) of the Ministry of Defense owns 34%, the National Investment Bank holds 24%, and the Egyptian Company for Mineral Resources owns the remaining 7%. 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
