Gold prices in Egypt have declined for the second consecutive week, affected by weak pricing activity in the local market and a global downturn in gold prices. The rise in the US dollar against the Egyptian pound limited gold losses locally. According to El Watan News, gold prices dropped due to decreased demand and a stronger dollar.
The price of 21-carat gold decreased by 115 pounds per gram over the past week, a 1.8% decline. It opened at 6,240 pounds, dropped to 6,075 pounds, and closed at 6,125 pounds per gram. This significant drop led to a test of the 6,100-pound level, which halted the decline and allowed prices to move higher.
The increase in the US dollar against the Egyptian pound reduced pressure on local gold prices. The dollar rose by 50 piasters, a 1% increase, to stabilize above 52 pounds. The dollar's value directly impacts gold pricing in Egypt, limiting the effect of global declines on local prices, as noted by Gold Bullion's technical analysis.
The Egyptian market is awaiting future global gold price movements and dollar exchange rates, as these factors significantly influence local pricing. The 21-carat gold price is currently near the 6,100-pound support level. Other gold carats follow the 21-carat price changes, with market trends and demand-supply dynamics in the gold market being closely monitored.
Globally, gold prices broke critical support levels over two weeks, dropping from 4,300 dollars to 4,200 dollars per ounce, before stabilizing at 4,100 dollars. This price movement indicates an attempt to form a new base, but momentum indicators remain negative. The recent surge in the US dollar against major currencies added to the downward pressure on gold prices.
The US dollar reached its highest level in a year and a half, rising for the third consecutive week. This development, coupled with a rise in US 10-year government bond yields, has contributed to the decline in gold prices. The bond yields increased by 2% to reach their highest level since 2002, marking the eighth consecutive weekly rise.
The interplay between the dollar, bond yields, and gold prices will likely continue to influence market trends. As investors monitor these economic indicators, gold prices in Egypt and globally may experience further fluctuations in response to changes in the market environment and investor sentiment.
Key points
- Egypt's gold prices declined for the second consecutive week due to weak local market pricing and global gold price drops.
- The 21-carat gold price decreased by 115 pounds per gram over the past week, a 1.8% decline.
- The rise in the US dollar against the Egyptian pound limited gold losses locally, as it directly impacts gold pricing in Egypt.
