2023-07-29 06:41:00
Books – Islam Saeed Saturday, July 29, 2023 09:41 AM Witness gold price In Egypt, it recorded its lowest level in about a month, and the price of a gram of 21 karat gold, which is the most popular in Egypt, recorded 2150 pounds, so that gold continues to record its low levels in the Egyptian market.
Gold prices today:
24 karat records 2457 pounds.
21 karat records 2150 pounds.
18 karat records 1843 pounds.
The gold pound is 17,200 pounds.
Raising American and European interest and its impact on gold
The Federal Reserve raised the interest rate by 25 basis points to reach 5.50% and indicated that the door is open during its next meeting for a new rate hike or stabilization, and that the decision will depend on economic data, on the other hand, the European Central Bank raised the interest rate by 25 basis points to reach 4.25. The bank indicated that its next meeting may witness raising or fixing interest, and that the bank’s decisions will depend on economic data.
The fact that global central banks continue to raise interest rates causes negative pressure on gold prices since interest increases the opportunity cost of owning gold that does not provide a return to its holders, which is what caused gold to end its rally in the short term.
Yesterday, a number of economic data on the US economy were issued, which caused a significant increase in dollar levels, which reflected negatively on gold prices. The growth rate in the United States increased during the second quarter of the year by 2.4%, compared to the previous reading by 2%, and expectations were 1.8. %.
Durable Goods Sales in the US in June also witnessed a significant increase by 4.7% from the previous reading of 1.8% and the forecast of 1.3%. While the number of applicants for unemployment benefits in the United States declined during the past week to 221 thousand, less than the previous reading of 228 thousand and expectations of 234 thousand, according to Gold Billion.
The US data is very positive for the dollar because it reflects the strength of the US economy and its distance from the economic recession, and thus increases the chances of raising interest rates again, which will reflect positively on the dollar.
dollar index
The dollar index, which measures its performance against a basket of 6 major currencies, increased during today’s session by 0.2%, after a significant increase yesterday by 0.7%, to record its highest level in two weeks, and increases pressure on gold prices due to the inverse relationship between them.
Also, the yield on US government bonds rose again, to record the yield on 10-year bonds, the highest level in two weeks, at 4.044%, to rise since the beginning of the week by 4.3%.
The rise in the yield on government bonds, along with the rise in the US dollar, was enough to push gold prices down sharply, especially since the current environment has become hostile to gold prices after the Federal Reserve and the European Central Bank raised interest rates at their last meeting and left the door open for a new rate hike during their next meeting.
Today, the markets are awaiting the release of other important data on the US economy, which is the core personal consumption expenditures index, which is the Fed’s favorite inflation indicator. The index is expected to record 4.2% during the month of June, compared to the previous reading of 4.6%.
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