2023-07-17 17:42:00
Islam Saeed wrote Monday, July 17, 2023 08:42 PM
We publish the latest update in Gold prices today, Monday At the end of evening trading, a gram of 21 karat gold, which is the best-selling in Egypt, recorded 2160 pounds per gram.
Gold prices today:
21 karat records 2160 pounds.
18 karat records 1851.5 pounds.
24 karat records 2468.5 pounds.
The gold pound is 17,280 pounds.
Global gold prices
Gold prices retreated from their highest levels in a month with the start of a new week of trading in global markets, in light of profit-taking operations following two weeks of gains, but the correction may be somewhat weak due to the weakness of the dollar.
Spot gold prices are trading at the time of writing the technical report of Gold Billion at the level of 1954 dollars an ounce, following it recorded the lowest level at 1950 dollars an ounce, while gold prices rose during the past week by 1.6%.
Gold prices were able to achieve a significant increase during the past two weeks, following finding support from the growing expectations that the Federal Reserve will resort to raising interest rates only once, at its next meeting in July, before stopping the series of rate hikes following that.
Confirmation of this came from a number of inflation data for the United States, which showed a less-than-expected decline, reflecting the inflation response to the Fed’s interest rate hikes, despite it being far from the bank’s target.
Pricing in the markets put a probability of more than 95% that the Federal Reserve will raise interest rates by 25 basis points at its meeting this July, but the possibilities of raising interest in the following meetings of the Bank disappeared, according to Gold Billion analysis.
This helped gold rise significantly, especially in light of the collapse in the levels of the US dollar once morest the major currencies, and its lowest level in 15 months, according to the dollar index, which measures its performance once morest a basket of 6 major currencies.
The dollar index continues to decline by 0.1% during today’s session, which helped gold to consolidate above the level of $1950 an ounce, despite expectations of a negative correction movement following the significant gains it recorded previously.
On the other hand, gold prices were negatively affected today by the release of growth data for the Chinese economy during the second quarter, as it recorded a growth of 6.3% on an annual basis, compared to expectations of 7.1%, but higher than the first quarter reading of 4.5%.
China is the first consumer of gold in the world, and the decline in growth in China reflects negatively on the performance of the household consumption sector in general and on their consumption of gold in particular, which is one of the reasons behind the decline shown by gold, starting from today’s session.
On the other hand, the government in China limited gold imports despite the near-record prices at which gold is traded in China, in addition to the season of stagnation in demand for gold in China by the Chinese household sector.
China’s domestic gold price rose 13% year-on-year in June, which greatly reduced gold demand and caused total demand to drop 10% annually from the amount of bullion stockpiled.
The demand in the domestic market in China, which is the largest consumer of gold in the world, represents a large proportion of the demand for gold jewelry and bullion around the world, and in light of this decline, we find that gold has lost one of the factors that support it.
Demand for gold contracts keeps rising
The CFTC’s Detailed Commitment of Traders report, which shows the speculative situation on gold for the week ending July 11, showed a significant increase in the demand for gold contracts compared to the previous report by 240,546 contracts, while the demand for gold contracts increased compared to the previous report by 240,546 contracts. 74,792 contracts.
The report also showed an increase in the total trading decisions on gold purchase contracts to 248 trading orders, while trading orders on gold selling contracts reached 160 trading orders.
The late data issued by the Commodity Futures Trading Commission (COT) report shows the expansion of demand for buying contracts once more, while the demand for short contracts continues as well, which describes the significant positive move that gold recorded during the past week.
The continued increase in the demand for short contracts also reflects the caution of investors and the lack of clarity in the vision for gold markets in the short to medium term.
It is worth noting that the World Gold Council report released in early July showed that a strong first half of the year for gold is likely to give way to a more neutral second half of the year.
The World Gold Council believes that gold finds support during the second half of the year as a result of the approaching cycle of raising interest rates to the end by global central banks, in addition to expectations of a moderate deflation for the United States in late 2023, which supports gold.
The report indicates that if economic conditions worsen and the US economy faces a sharp downturn, gold will face increased demand. Conversely, the quiet stagnation of the US economy and the continuation of a more hawkish monetary policy of re-raising interest rates or maintaining interest rates at record levels for a longer period of time might lead to a withdrawal of investment from the gold markets.
The World Gold Council’s report summarized its expectations for the second half of 2023 that, given the uncertainty in forecasting global macroeconomic outcomes, gold’s performance will be neutrally positive during this period.
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