Gold prices in Egypt and global markets experienced slight fluctuations on July 2, 2024, with a general trend towards a modest increase. In Egypt, the price of 21-karat gold, the most commonly traded, rose by approximately 10-15 Egyptian pounds, reaching around 3165-3170 EGP per gram. This increase reflects the metal’s status as a safe-haven asset amid economic uncertainties.On the global stage, spot gold prices hovered around $2324-$2332 per ounce, with slight variations throughout the day. The movement in gold prices comes as investors await comments from Federal Reserve Chair Jerome Powell and the release of U.S. non-farm payrolls data later in the week. These events are expected to provide insights into potential interest rate decisions by the Federal Reserve.The slight uptick in gold prices occurs despite some downward pressure from a strengthening U.S. dollar. Analysts from City Group anticipate a surge in gold investment demand over the next 12-18 months, potentially absorbing almost all mine supplies. However, they also note potential risks to this forecast, including lower-than-expected Chinese demand or a delay in the Federal Reserve’s return to normal interest rates.In the broader economic context, recent U.S. inflation data for May showed a slowdown, fueling expectations of potential rate cuts by the Federal Reserve. However, some influential Federal Open Market Committee members, including Michelle Bowman, remain opposed to rate cuts, citing ongoing inflationary pressures.As the precious metal continues to navigate through global economic uncertainties, its price movements reflect a delicate balance between its role as a safe-haven asset and the impact of monetary policies. Investors and analysts will be closely watching upcoming economic indicators and central bank decisions for further direction in the gold market.
Key points
- Gold prices in Egypt rose slightly, with 21-karat gold reaching around 3165-3170 EGP per gram.
- Global spot gold prices fluctuated around $2324-$2332 per ounce.
- Investors await Federal Reserve Chair Jerome Powell’s comments and U.
- Analysts expect increased gold investment demand over the next 12-18 months, but note potential risks such as lower Chinese demand.
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non-farm payrolls data for insights on interest rates.
Contradictions👾While some sources report a rise in gold prices, others indicate a slight decline or stability.
This discrepancy likely reflects different reporting times throughout the day and variations between local and global markets.
