Gold Observatory: Domestic Gold Prices Rise 1.8% Amid a 2.2% Global Surge and Weak US Labor Data
The "Gold Observatory" revealed that domestic gold prices rose by 1.8% during last week's trading, while an ounce on the global exchange surged by 2.2%. The rally was supported by weak US labor market data and cooling investor bets on continued monetary policy tightening. Meanwhile, positive forecasts from global financial institutions and ongoing central bank purchases bolstered the positive outlook for the yellow metal during the second half of the year.
Dr. Waleed Farouk, Director of the "Gold Observatory for Economic Studies," stated that domestic gold prices increased by approximately EGP 105 last week. The 21-karat gold gram opened trading at EGP 5,780, dipped to EGP 5,630, before rallying to EGP 5,920 and closing the week at EGP 5,885.
He added that an ounce on the global exchange rose by about $88 over the week, opening at $4,088, sliding to $3,973, and then climbing to $4,185 before closing at $4,176 per ounce. Locally, the 24-karat gold gram recorded EGP 6,726, while the 18-karat gram reached EGP 5,044, and the gold coin (Pound) stood at EGP 47,080.
Farouk explained that the surge in gold prices followed a week marked by sharp volatility. The yellow metal faced initial downward pressure due to a strong US dollar and profit-taking operations. However, it reversed its trajectory following the release of data showing a larger-than-expected slowdown in the US labor market. This fueled expectations that US interest rates would remain steady for longer, easing pressure on gold as one of the world's most critical non-yielding assets.
He concluded that the fading prospects of monetary policy tightening prompted investors to rebuild their gold positions. Furthermore, the drop in US Treasury yields enhanced the appeal of the precious metal, enabling it to recover swiftly from its weekly lows and secure strong gains by the close.