On December 10, 2023, the Egyptian gold market experienced a notable increase, with the most traded 21-karat gold gram soaring to EGP 2,785 for selling and EGP 2,775 for buying. The rise in prices aligns with a similar trend in the international gold market, denominated in U.S. dollars.
Domestic and International Gold Price Movements
The 24-karat gold gram today is quoted at EGP 3,183 for selling and EGP 3,169 for buying, while the 18-karat gold gram ascended to EGP 2,387 for selling and EGP 2,376 for buying. The 14-karat gold gram also experienced an uptick, reaching EGP 2,052 for selling and EGP 2,040 for buying.
On a broader scale, the price of a gold pound, equivalent to 8 grams of 21-karat gold, climbed to EGP 22,200 for selling and EGP 22,150 for buying. Globally, an ounce of gold traded at $2,006 for selling and $2,004 for buying.
However, gold prices adjusted for manufacturing cost can vary among Egyptian jewelers, with a difference ranging between 5 to 10 percent of the value of the sold items, contingent on the trader.
Factors Driving Gold Prices
The current rise in gold prices is attributed to a complex interplay of market dynamics. A key driver is the rising global inflation, exacerbated by the ongoing Russian-Ukrainian war, which has triggered economic uncertainty and increased the demand for safe-haven assets like gold.
Moreover, the recent U.S. labor data indicating a robust job market has prompted the U.S. Federal Reserve to continue its restricted monetary policies. This has led to a strengthening U.S. dollar and surging Treasury yields, causing gold prices to fluctuate.
Economic experts predict a continued increase in gold prices in the near future. This anticipation is based on the factors mentioned above and potential policy actions from the Federal Reserve following their forthcoming policy meeting.
The release of additional economic indicators like consumer inflation data (CPI) will also play a significant role in shaping the market's direction. Investors and traders are adjusting their positions in anticipation of these developments and their potential impact on interest rates and consequently, gold prices.
As the world grapples with economic uncertainties, the gold market is expected to maintain its volatility, becoming a barometer of global economic sentiment and a testament to the enduring value of this precious metal.