Egypt’s Gold Prices See a Decline of 80 Pounds; 21-Carat Gram Recorded at 2010 Pounds on the Seventh Day

I backed off gold prices During trading today, Tuesday, in light of profit-taking sales, after the precious metal recorded its highest level in a year, breaching the psychological level of $2000 an ounce, before it began to gradually decline from these levels due to profit-taking of several long deals, according to Gold Billion.

Spot gold prices decreased during today’s session by 0.5%, to trade at the time of writing the report at the level of $1968.61 an ounce, this comes after it recorded the highest level since March 2022 during yesterday’s session at $2009.69 an ounce, and it also decreased Gold prices in the Egyptian market From 2090 pounds per gram of 21 karat to 2010 pounds in today’s dealings.

Gold prices today:

21 karat records 2010 pounds.

18 karat records 1723 pounds.

24 karat records 2297 pounds.

The gold pound is 16080 pounds.

An ounce of gold is 1969 dollars.

Landing in gold prices Yesterday, after recording the record level above $2,000 an ounce, it was due to profit-taking sales after closing many buy deals in this area. This decline in prices occurred despite the dollar’s decline against the major currencies.

The dollar index, which measures the performance of the federal currency against a basket of 6 major currencies, is trading today near the lowest level it recorded yesterday at 102.89, its lowest level in five weeks. This comes in light of the negative pressure on the US dollar before the US Federal Reserve meeting that starts today and for two days.

Investors are looking forward to the Fed’s monetary policy meeting as expectations grow that the Fed will slow its tightening given the turmoil in the banking sector. Markets are pricing in a 26.9% chance that the Fed will stop raising rates at its meeting with a 73.1% forecast for a 25bp hike.

Scenarios for the Federal Reserve decision and its impact on gold

As for the scenarios for the Federal Reserve’s decisions that will be announced tomorrow, in the event that interest rates are fixed, we will witness the return of gold above the level of $2000 an ounce, but in order for gold to stabilize above this level, we need to know the bank’s vision for the future of interest in the short to medium term.

Also, gold will need to be the Federal President Jerome Powell’s speech after the meeting tends to support economic growth and deteriorating conditions in the banking sector at the expense of inflation, and in this case we will see new highs in gold and record historical levels.

As for the other scenario, which is the closest to happening according to the market expectations that we referred to, in which the bank will resort to raising interest rates by 25 basis points, but it may indicate a temporary halt in the interest rate hike cycle to give the markets an opportunity to absorb the successive rate hike decisions since last year.

In this case, we may witness stability in gold prices near its current levels, especially since this scenario is priced so far in the financial markets, but the dollar’s movements will also have a significant impact on gold.

Gold is considered a safe haven in times of financial uncertainty that we are currently going through, and low interest rates make investing in non-returnable gold more attractive by reducing the opportunity cost of holding it.

Monday witnessed volatile dealings in the gold markets. Gold prices initially fell by about 1%, but then reversed course to jump to their highest levels since March 2022 at $2,009.69, after investors absorbed the impact of the measures taken by several central banks to contain the banking crisis and stabilize the economy. global financial markets.

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