Gold prices stabilized in the local market during today's trading, Saturday, coinciding with the weekly holiday of the global stock exchange, after the ounce achieved gains of 1.8 %, with the rise in demand for safe haven amid speculation of a cut in interest rates by the US Federal Reserve and the weakness of the dollar.
Saeed Imbaby, CEO of iSaaga, an online gold and jewelry trading platform, said that the price of a gram of 21-karat gold stabilized at 4,120 pounds, while the global ounce recorded $2,910.
He added that the price of a gram of 24-karat gold recorded 4,709 pounds, the price of an 18-karat gram recorded 3,531 pounds, the price of a 14-karat gram recorded about 2,747 pounds, and the price of a gold pound recorded about 32,960 pounds.
Mbappe explained that the increase in demand for safe havens amid speculation of a rate cut by the Federal Reserve and the weakness of the US dollar, strengthened gold globally, noting that markets reacted to the state of economic uncertainty and the slowdown in job growth in the United States, which strengthened bets on a rate cut by the Federal Reserve.
He added that the US dollar's decline to its lowest level in four months made gold more attractive to investors, as the dollar's decline was driven by the non-farm payrolls report and growing speculation about an interest rate cut by the Federal Reserve.
Mbappe indicated that the movements of gold prices in the coming period will depend on inflation rates following the release of the consumer price report next Friday, in addition to signals from the Federal Reserve's policy directions.
He added that concerns about trade tensions and the continued decline of the dollar are strengthening gold, but the market's exposure to profit-taking or a change in the Federal Reserve's expectations may lead to a halt in the continued rise in gold.
China continued its gold buying spree for the fourth straight month in February, suggesting continued central bank demand for the metal, while geopolitical risks and trade uncertainty provided further support for the safe haven.
According to the World Gold Council, the People's Bank of China bought about 10 tons in the first two months of 2025, while the largest buyer was the National Bank of Poland, which increased its reserves by 29 tons, its largest purchase since June 2019, when it bought 95 tons.
