Gold Prices Poised to Approach $5,000 an Ounce Amid Global Uncertainty
Cairo, Egypt – Global financial institutions are predicting a notable surge in gold prices, potentially reaching near $5,000 an ounce in the near future, according to Said Imbaby, CEO of the “i-Saws” platform. The anticipated rise is fueled by a complex interplay of global economic factors adn local market dynamics.
Gold prices within Egypt are resolute by three key elements: the international spot price of an ounce, the exchange rate between the US dollar and the Egyptian pound, and the balance of supply and demand within the local market. Recently, the weakening of the dollar – falling to approximately 48.45 Egyptian pounds at the central bank – has helped to moderate the pace of gold price increases domestically.
Analysts emphasize that gold’s recent climb to $3,600 an ounce isn’t a temporary fluctuation. It reflects heightened global uncertainty stemming from factors including customs duties, expectations surrounding monetary policy easing, concerns over US debt levels, and growing questions regarding the independence of the Federal Reserve.
US Jobs Report Drives Latest Price Surge
A recent catalyst for increased gold prices was the release of the US non-agricultural jobs report. The report revealed a significant slowdown in job creation, with the economy adding only 22,000 jobs in August - far below the anticipated 75,000.Simultaneously, the unemployment rate rose to 4.3% from 4.2% the previous month, while wage growth remained stagnant at 0.3% month-over-month.
This data triggered a 0.70% decline in the US dollar, bringing its index to 97.57. Yields on US Treasury two-year bonds also decreased by 11 basis points, settling at 3.48%. These developments bolstered investor demand for gold as a customary safe-haven asset.
