Gold prices today, Sunday, recorded 1860 pounds per gram – the seventh day

Gold prices in Egypt recorded remarkable stability at the beginning of trading today, Sunday, and the price of a gram of 21 carat gold, the most common today, Saturday, reached 1860 pounds per gram, rising by approximately 35 pounds during the past week, while the price of the gold pound recorded today 14880 pounds.

Gold prices today in Egypt:

18 karat records 1594 pounds.

21 karat gold recorded a price of 1860 pounds.

24 karat, its price is 2126 pounds.

The gold pound is 14,880 pounds.

Gold futures

The global gold markets witnessed a dramatic shift during the ending week, after a negative start for gold prices, reaching nearly the lowest level in three months, gold was able to end the week’s trading near its highest levels in a month, according to a technical report by Gold Billion, and spot gold prices closed last week’s trading. recording an increase of 0.7%, after hitting the lowest level at $1809.31 an ounce, to close at the level of $1867.14 an ounce, as gold rose on Friday alone by 2%.

The gold bullion technical report said that the shift in the performance and direction of gold occurred during yesterday’s Friday session alone, which witnessed an increase of approximately $36. As for the US dollar, after the dollar index recorded its highest levels in three months during the past week, it closed the week’s trading down by 0.3%, and it had recorded the lowest level in two weeks at 103.57.

On Friday, the US government jobs report data for the month of February was released, showing that 311,000 jobs were hired, compared to January’s reading of 504,000. 0.3%.

The number of new jobs, despite its rise above expectations for the 11th consecutive month, is much lower than the January reading, in addition to a sudden rise in the unemployment rate accompanied by a decline in wage rates, which indicates the success of the previous interest rate hikes by the Federal Reserve in curbing The employment sector, which is the biggest supporter of inflation in the Fed’s view.

The US jobs report data caused market expectations to change regarding the Federal Reserve’s decision on interest rates again, as the new pricing in the markets is in favor of raising interest rates by only 25 basis points during the next Fed meeting on March 21-22, after pricing at the beginning of the week by raising interest by 50 basis points, and that Following Federal Reserve Governor Jerome Powell’s testimony before the US Congress.

Fed funds futures fell to a 41% chance the Fed will raise 50 basis points when it meets on March 22, compared to a 71.6% chance last week.

Powell’s congressional testimony earlier in the week was seen as hawkish and boosted the dollar as it pushed up treasury yields which weakened gold prices during the week, before all of these factors were reversed in the week’s final trading days.

The yield on the US benchmark 10-year Treasury fell more than 22 basis points to less than 3.70%, in the biggest one-day drop in four months. Bond yields move inversely to their price.

Also, the yield on two-year Treasury bonds, which is more sensitive to a change in interest rate expectations, fell to its lowest level in three weeks at 4.578%, recording its largest decline in two days since 2008, which strongly supports the rise in gold prices.

A new banking crisis brings fears back on the rise

The US stock markets witnessed violent declines yesterday, after the shares of one of the largest US banks suffered a sharp decline that exceeded 60% of its market value, which is Silicon Valley Bank SVB Financial, after fears of liquidity in the bank, as the bank failed to sell its securities between ordinary and preferred convertible shares. This caused a collapse of investor confidence.

The news about the bank was enough to send a violent negative impact on the stocks of the entire banking sector, along with stocks of technology companies, as the bank is one of the largest banks for emerging technology companies.

The Nasdaq Technology Stock Index fell yesterday, Friday, by 1.4%, and fell on the weekly level by 4.2%, to reach its lowest level in a month and a half. Yesterday, the most popular S&P500 index fell by 1.3%, and on a weekly basis it fell by 4.8%, to its lowest level in more than two months.

The deterioration of the US stock markets and fears of the banking crisis, which may spread its negative effects to many other banks, were sufficient reasons to push gold to rise and record record levels during the past week.

Gold has become everyone’s favorite trading again, and this may continue because the fears of liquidity risks in the US banking sector will not quickly emerge on Wall Street, which will push the markets to sell shares in favor of investing in gold, especially after the decline in bond yields. The US government because of the jobs report that changed interest expectations again.

Weak beginnings for gold in 2023, but the recovery is coming quickly

The performance of gold began to weaken at the beginning of 2023 despite the positive performance it recorded last January when it increased by 5.5%. Of the total gold holdings of the funds, amounting to 3446 tons.

The London Bullion Market Association (LBMA) also announced a decrease in the amount of gold held in vaults by 0.5% until last February, compared to the previous month, to reach 8,990 tons, at a value of $527.4 billion, to reach approximately 719,239 gold bars.

The London Bullion Market Association is an international association that represents the global market for gold and silver bullion, which has a global client base, and its data reflects the decline in investor confidence in investing in gold.

However, the World Gold Council report indicated that the demand for gold has remained at stable levels since the beginning of 2023, with the support of purchases by global central banks, after the record purchases that took place in 2022.

During the month of January, central banks added 31 tons of gold to their reserves, an increase of 16% compared to the previous month.

The report of the World Gold Council reassured the markets about the future of actual demand for gold during the year 2023, and that support from central bank purchases remains largely present in the markets, especially after the record levels of central bank purchases of gold in 2022.

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