Gold prices witnessed relative stability in the local market during trading on Tuesday, coinciding with a slight increase in the price of an ounce on the global stock exchange. Markets are anticipating US inflation data and developments in the US-China trade talks.
Saeed Imbaby, CEO of iSaaga, an online gold and jewelry trading platform, said the price of 21-karat gold remained unchanged at EGP 4,670 per gram, little changed from Monday's closing price. Meanwhile, the global price of an ounce rose by $12, reaching $3,339.
He added that the price of a gram of 24-karat gold reached 5,337 Egyptian pounds, the price of an 18-karat gram reached 4,003 Egyptian pounds, and the price of a 14-karat gram reached 3,114 Egyptian pounds. The price of a pound of gold reached 37,360 Egyptian pounds.
He pointed out that the limited movements in global gold prices come amid anticipation of the release of the US Consumer Price Index (CPI) report, scheduled for Wednesday. This report is one of the key indicators the Federal Reserve relies on to determine monetary policy during its upcoming meeting on June 17 and 18.
According to Mbappe, rising inflation rates could reduce the chances of an interest rate cut, putting pressure on gold prices, while a weaker-than-expected reading could support gold as a hedge against monetary easing.
Analysts expect the Federal Reserve to keep interest rates unchanged at its next meeting, but estimates indicate a 50 basis point cut by the end of the year, given current economic data.
