2023-07-24 18:09:00
Islam Saeed wrote Monday, July 24, 2023 09:09 PM
maintained gold prices On its stability according to the latest update at the end of evening trading today, Monday, after remarkable stability for the second week in a row, and gold recorded 2165 pounds per gram of 21 karat, which is the best-selling in Egypt, as the demand for gold witnesses remarkable stability, as well as calmness in the exchange rate, which is reflected in price stability throughout this week’s trading.
Gold prices in Egypt today:
21 karat records 2165 pounds.
18 karat records 1851.5 pounds.
24 karat records 2468.5 pounds.
The gold pound is 17,280 pounds.
Gold awaits the results of the Federal Reserve meeting
Gold prices witnessed a quiet start to this week’s trading, to trade near the closing levels of last week, with the markets waiting for a decisive week in the future of the Federal Bank’s monetary policy, and therefore for the conditions of many financial assets, especially gold.
Spot gold prices are trading during trading today, Monday, at the time of writing the technical report for Gold Billion, at the level of 1964 dollars an ounce, higher by 3 dollars than the opening price of today’s session. This comes after a volatile week in the gold markets during the past week, during which the precious metal recorded a decline for three consecutive sessions.
During the past week, gold prices were able to trade above $1950 an ounce, which protects the bullish momentum for gold, pending the outcome of this week’s events, which would confirm this rise or push prices to fall and break the aforementioned level.
The Gold Billion report indicated that there is a current support area for gold prices from 1938 to 1950, and it is expected to withstand any declines in prices until the Federal Reserve meeting, and accordingly, the movement of gold will be determined during the coming period.
During the recent period, the markets priced a possibility of close to 100% for the Federal Reserve to raise interest rates during its meeting this week by 25 basis points, provided that it begins a long waiting period without a change in interest, which may be considered the end of the cycle of raising interest rates that began since last year, but until now there has been no confirmation or denial of this scenario by the Federal Bank, which indicated on more than one occasion that the bank’s decisions depend on the economic data issued before it, and when looking at the latest data, we find that the inflation rate has declined significantly in the United States, although it remains far from the Fed’s target according to the Federal Reserve. Gold Bellion Analysis.
Also, job data and the employment sector showed a decline in June, which indicates the emergence of the effects of a slowdown in the economy and thus the lack of need for more decisions to raise interest rates, which greatly supported the rise in gold.
Gold is negatively affected by raising interest rates, as it increases the opportunity cost, since gold is an asset that does not provide a return to its holders, unlike bonds that provide a return that rises with the increase in interest rates.
The Gold Billion report indicated that the scenario of the Federal Reserve stopping raising interest rates after its current meeting bodes well for gold, but it is uncertain whether the precious metal will be able to regain its record highs, given that interest rates are also set to remain high for a longer period.
There is also uncertainty as to whether the Fed will halt its rate hike cycle, especially with inflation in the US still heading above the central bank’s annual target of 2%. In addition to the bank’s reference during its last meeting to raise interest twice during the second half of the year.
Put gold in front of the dollar
As for the US dollar, it opened the week’s trading positively, recording an increase for the fifth consecutive session, according to the dollar index, which measures its performance against a basket of 6 major currencies.
The dollar index rose today by 0.3% and recorded the highest level in two weeks, continuing to move away from its lowest levels since April of 2022, which it recorded during the past week, according to Gold Billion.
The US dollar has risen again during the recent period, after the weak data issued by consumer spending, which increased the demand for the dollar as a safe haven alongside gold, and this limited gold’s gains during this period.
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