Gold Prices Surge in Egypt as Global Market Fluctuates

Gold prices have seen a notable increase in Egypt, rising by EGP 35 over the past week. This rise, which amounts to a 0.9% increase, comes despite a slight decline of 0.4% in global gold prices. The fluctuations in gold prices are largely influenced by economic data that indicates persistent inflation, which has led to intense sell-offs in the global market.

As of the beginning of the week, the price of 21-karat gold in Egypt was EGP 3,735 per gram. It reached a peak of EGP 3,800 before closing at EGP 3,770. In comparison, global gold prices opened at $2,747, peaked at an all-time high of $2,800, and closed at $2,736. In the local market, 24-karat gold is currently priced at EGP 4,309, while 18-karat and 14-karat gold are priced at EGP 3,231 and EGP 2,514, respectively. The price for a gold pound stands at EGP 30,160.

Interestingly, there was a slight dip of EGP 5 in prices on Saturday, which coincided with the global market's weekend closure. A monthly report from iSagha indicates a 6.3% increase in local gold prices for October, with 21-karat gold rising by EGP 225 to close at EGP 3,785. Meanwhile, global prices have risen by 4.4%, reaching a peak of $2,800.

Despite the recent fluctuations, gold prices remain strongly supported by various factors, including a slowing US economy and a weakened labor market. Recent data revealed that the US added only 12,000 jobs in October, significantly lower than the forecasted 100,000. This decline is partly attributed to recent hurricanes affecting the southern states. The labor market's fragility is further highlighted by significant drops in August and September.

Inflation continues to be a pressing concern, with the core Personal Consumption Expenditures (PCE) index, which is the Federal Reserve's preferred measure of inflation, showing consumer prices steady at 2.7% over the past three months. Analysts suggest that if inflation remains high, it will be challenging for the Federal Reserve to lower interest rates significantly before 2025.

As the markets look ahead, they are closely monitoring a series of economic reports and events. These include the Reserve Bank of Australia's policy decision, the US Institute for Supply Management's Services PMI, and the upcoming US presidential and congressional elections. The outcomes of these events could have significant implications for gold prices and the broader economy.

While gold prices in Egypt have seen an increase, the global market remains volatile due to various economic factors. Investors and consumers alike should stay informed about these developments, as they could impact future gold prices and economic stability. Understanding these trends is crucial for making informed decisions in an ever-changing financial landscape.