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Daily News Egypt
13-04-2025
- Business
- Daily News Egypt
Gold prices in Egypt surge 7% over past week, climbing more than EGP 300
Gold prices in Egypt surged by 7% over the past week, rising by EGP 310 to close at EGP 4,690 per gram during Saturday's trading—the highest level recorded this week. This jump continues a sharp upward trend driven by soaring global gold prices and a persistently strong US dollar against the Egyptian pound. According to Gold Bullion analysis, gold opened the week at EGP 4,380 per gram before climbing steadily to its current record high. The increase in local prices was largely supported by the global gold rally, which has seen international prices break historic records due to rising demand for safe-haven assets. Despite a slight pullback in the USD/EGP exchange rate during Friday's session, the global momentum in gold markets more than offset the local currency fluctuations. The dollar continues to trade near record highs against the pound, further contributing to the uptick in local gold pricing. Global Drivers and Market Sentiment Globally, gold prices recorded their strongest weekly gain since March 2023, with the price of an ounce rising by 6.6%. The precious metal broke through the psychological $3,200 barrier, peaking at a historic $3,245 per ounce before closing the week slightly lower at $3,237. The rally was fueled by heightened demand for gold as a safe-haven investment amid global market uncertainty, exacerbated by geopolitical tensions and disruptions related to trade tariffs introduced by former US President Donald Trump. These developments triggered a notable weakening of the US dollar and reduced appetite for US government bonds—factors that traditionally support gold's upward movement. Macroeconomic Context in Egypt Domestically, inflation figures show a mixed picture. The Central Bank of Egypt (CBE) reported a slowdown in core inflation to 9.4% year-on-year in March, down from 10% in February—marking the lowest level since February 2022. Core inflation excludes volatile items such as food and fuel. However, headline inflation, as reported by the Central Agency for Public Mobilization and Statistics (CAPMAS), rose to 13.6% in March from 12.8% in February. This is the first uptick in headline inflation since October 2024. Meanwhile, Egypt's trade deficit narrowed slightly in January 2025, reaching $3.42bn compared to $3.44bn a year earlier—a marginal decline of 0.58%, according to the Central Auditing Organization. Outlook With global gold prices maintaining their bullish momentum and the local exchange rate still elevated, analysts anticipate that domestic gold prices in Egypt may continue to climb in the short term. The absence of a significant correction in international markets suggests that the upward trend could persist, barring any major shifts in macroeconomic or geopolitical dynamics.
Zawya
24-03-2025
- Business
- Zawya
Gold prices surge 5.9% since early March amid market uncertainty
Global gold prices continued their upward trajectory last week, marking a third consecutive weekly gain despite a pullback in the final two trading sessions after reaching an all-time high. Over the past week, gold prices rose by 1.3%, peaking at a record $3,057 per ounce. The week began at $2,988 per ounce and closed at $3,023 per ounce, according to Gold Bullion. The metal is on track for a third straight monthly gain, up 5.9% since early March. Since the start of 2025, gold has surged 15.2%, setting 16 record highs, four of which surpassed the $3,000 per ounce milestone. Federal Reserve Policy and Gold Market Trends The US Federal Reserve maintained interest rates at 4.25%-4.50% during its second meeting of the year last Wednesday, in line with expectations. Fed projections indicate two quarter-point rate cuts by the end of 2025, reflecting ongoing uncertainty over trade policies, labor market resilience, and persistent inflation. This has reduced the urgency for immediate monetary policy adjustments. Despite gold's record-setting momentum, profit-taking and a strengthening U.S. dollar led to declines in the last two trading sessions of the week. The inverse relationship between gold and the dollar exerted additional downward pressure on the metal. Geopolitical Risks Fuel Demand Market analysts note that while investors are taking profits, gold remains in demand as a safe-haven asset amid geopolitical tensions. Continued airstrikes by Israel on Gaza have confirmed the collapse of a two-month ceasefire, escalating risks and driving further demand for gold. The World Gold Council (WGC) suggested that gold may stabilize in the short term due to its rapid recent gains. However, ongoing geopolitical uncertainty, inflationary pressures, expectations of lower interest rates, and a weaker U.S. dollar continue to support investment demand. If gold remains above $3,000 per ounce for the next two weeks, the council predicts increased buying activity. Gold Price Forecasts and ETF Inflows ANZ Bank has raised its gold price forecast to $3,100 per ounce for the next three months and $3,200 per ounce over six months, citing heightened geopolitical risks, easing monetary policies, and central bank purchases. Meanwhile, WGC reported a sustained influx into gold-backed exchange-traded funds (ETFs) for the seventh consecutive week. Inflows totaled 32.7 tonnes of gold for the week ending March 14, underscoring continued investor confidence in the metal. Local Gold Market Trends Local gold prices in Egypt also saw gains last week, reaching new record highs. On Saturday, 21K gold opened at EGP 4,285 per gram and traded at EGP 4,280 per gram after a slight EGP 10 drop on Friday. Over the week, gold rose 1.9%, hitting a peak of EGP 4,305 before closing at EGP 4,280 per gram. The sharp increase in global gold prices was the primary driver of local gold market trends. The relative stability of the U.S. dollar against the Egyptian pound had a neutral effect on local pricing. Supply and demand dynamics played a lesser role in price movements, as high prices deterred buying interest. Profit-taking led to a temporary decline in gold prices on Friday, as investors consolidated gains before attempting a breakout above EGP 4,300 per gram. Economic Outlook and Market Stability Market stability in Egypt has improved following the successful completion of the International Monetary Fund's (IMF) fourth review and the approval of a new loan tranche. Additionally, expectations are rising that the Central Bank of Egypt may begin cutting interest rates following a decline in inflation. As global economic conditions evolve, gold's role as a hedge against uncertainty remains strong, with investors closely watching central bank policies, geopolitical developments, and inflation trends.
Daily News Egypt
22-03-2025
- Business
- Daily News Egypt
Gold prices surge 5.9% since early March amid market uncertainty
Global gold prices continued their upward trajectory last week, marking a third consecutive weekly gain despite a pullback in the final two trading sessions after reaching an all-time high. Over the past week, gold prices rose by 1.3%, peaking at a record $3,057 per ounce. The week began at $2,988 per ounce and closed at $3,023 per ounce, according to Gold Bullion. The metal is on track for a third straight monthly gain, up 5.9% since early March. Since the start of 2025, gold has surged 15.2%, setting 16 record highs, four of which surpassed the $3,000 per ounce milestone. Federal Reserve Policy and Gold Market Trends The US Federal Reserve maintained interest rates at 4.25%-4.50% during its second meeting of the year last Wednesday, in line with expectations. Fed projections indicate two quarter-point rate cuts by the end of 2025, reflecting ongoing uncertainty over trade policies, labor market resilience, and persistent inflation. This has reduced the urgency for immediate monetary policy adjustments. Despite gold's record-setting momentum, profit-taking and a strengthening U.S. dollar led to declines in the last two trading sessions of the week. The inverse relationship between gold and the dollar exerted additional downward pressure on the metal. Geopolitical Risks Fuel Demand Market analysts note that while investors are taking profits, gold remains in demand as a safe-haven asset amid geopolitical tensions. Continued airstrikes by Israel on Gaza have confirmed the collapse of a two-month ceasefire, escalating risks and driving further demand for gold. The World Gold Council (WGC) suggested that gold may stabilize in the short term due to its rapid recent gains. However, ongoing geopolitical uncertainty, inflationary pressures, expectations of lower interest rates, and a weaker U.S. dollar continue to support investment demand. If gold remains above $3,000 per ounce for the next two weeks, the council predicts increased buying activity. Gold Price Forecasts and ETF Inflows ANZ Bank has raised its gold price forecast to $3,100 per ounce for the next three months and $3,200 per ounce over six months, citing heightened geopolitical risks, easing monetary policies, and central bank purchases. Meanwhile, WGC reported a sustained influx into gold-backed exchange-traded funds (ETFs) for the seventh consecutive week. Inflows totaled 32.7 tonnes of gold for the week ending March 14, underscoring continued investor confidence in the metal. Local Gold Market Trends Local gold prices in Egypt also saw gains last week, reaching new record highs. On Saturday, 21K gold opened at EGP 4,285 per gram and traded at EGP 4,280 per gram after a slight EGP 10 drop on Friday. Over the week, gold rose 1.9%, hitting a peak of EGP 4,305 before closing at EGP 4,280 per gram. The sharp increase in global gold prices was the primary driver of local gold market trends. The relative stability of the U.S. dollar against the Egyptian pound had a neutral effect on local pricing. Supply and demand dynamics played a lesser role in price movements, as high prices deterred buying interest. Profit-taking led to a temporary decline in gold prices on Friday, as investors consolidated gains before attempting a breakout above EGP 4,300 per gram. Economic Outlook and Market Stability Market stability in Egypt has improved following the successful completion of the International Monetary Fund's (IMF) fourth review and the approval of a new loan tranche. Additionally, expectations are rising that the Central Bank of Egypt may begin cutting interest rates following a decline in inflation. As global economic conditions evolve, gold's role as a hedge against uncertainty remains strong, with investors closely watching central bank policies, geopolitical developments, and inflation trends.
Daily News Egypt
08-03-2025
- Business
- Daily News Egypt
Gold prices surge 1.8% over past week: Gold Bullion
Gold prices declined on Friday, yet the precious metal achieved gains over the past week due to safe-haven inflows and a US jobs report revealing lower-than-expected job growth in February. This suggests that the Federal Reserve may be on track to cut interest rates this year. The global ounce price of gold rose by 1.8% last week, closing at $2,909 per ounce after opening the week at $2,873 per ounce and reaching a weekly high of $2,930 per ounce, according to Gold Bullion. Despite trading mostly below the $2,930 per ounce resistance level, gold lacked the necessary bullish momentum to break through and target the recent all-time high of $2,956 per ounce. The US government jobs report showed that the American economy added 151,000 jobs in February, compared to market expectations of 160,000 jobs, with the unemployment rate standing at 4.1%, slightly higher than the expected 4%. The weaker-than-expected US jobs data supported gold, along with a decline in the US dollar index to a four-month low, marking its biggest weekly drop since November 2022. Additionally, ongoing uncertainty regarding President Biden's tariff policies has increased demand for gold as a safe haven and hedge against potential inflation from these trade measures. Federal Reserve Chair Jerome Powell stated that the Fed can wait to assess the impact of President Trump's policies before adjusting interest rates. He highlighted significant policy changes in trade, immigration, and regulation, emphasizing their overall effect on economic and monetary policy. Despite high uncertainty, Powell stressed a cautious approach, focusing on real signals over market noise, contrasting with rising market expectations for rate cuts this year. China increased its gold reserves to 73.61 million ounces in February, up from 73.45 million ounces in January, marking the fourth consecutive month of purchases by the Chinese central bank. According to data released on Friday, China's gold reserves reached $208.64bn in February, up from $206.53bn in January. Meanwhile, global gold-backed investment funds recorded net inflows of 26.6 tonnes in the week ending February 28, marking the fifth consecutive week of inflows into these funds. Local Gold Prices Domestic gold prices rose last week, supported by gains in global gold prices and the gradual increase in the U.S. dollar exchange rate against the Egyptian pound, leading to a positive weekly close. On Saturday, 21k gold, the most commonly traded in Egypt, opened at EGP 4,125 per gram and was trading at EGP 4,120 per gram at the time of writing. The price dropped by EGP 10 on Friday, closing at EGP 4,120 per gram after opening at EGP 4,130 per gram. Forecasts Global gold prices increased last week, supported by the decline in the U.S. dollar and weaker-than-expected U.S. jobs data, along with continued demand for gold as a safe-haven asset amid ongoing U.S. trade policies. Local gold prices also increased during the past week, benefiting from rising global gold prices and the gradual appreciation of the U.S. dollar against the Egyptian pound, which contributed to higher gold pricing. Global gold closed the week below the $2,930 per ounce level, acting as a resistance point. This suggests weak bullish momentum, but as long as prices remain above $2,900 per ounce, another upward attempt may occur next week. If this level is breached, gold could rise toward the next resistance zone at $2,950–$2,960 per ounce.
