Islam Saeed wrote on Tuesday, July 04, 2023 01:30 PM Gold price in Egypt Today, in morning trading, it decreased by about 10 pounds, and 21 karat, which is the best-selling in Egypt, recorded 2220 pounds per gram without adding factory, after prices recorded 2230 pounds per gram yesterday.
Gold prices today:
24 karat records 2539 pounds.
21 karat records 2220 pounds.
18 karat records 1903 pounds.
The gold pound is 17,760 pounds.
Gold trends in the global stock market
Gold prices rose for the fourth consecutive session before the minutes of the Federal Reserve meeting, and before the employment sector data from the United States of America, where gold found support from the weak American data and the decline in dollar levels.
Spot gold prices witnessed today, Tuesday, an increase of 0.3% for trading at the time of writing the technical report of Gold Billion at the level of $1929 an ounce, this comes after gold recorded the highest level in a week during yesterday’s trading at $1031 an ounce, but it failed to settle above the resistance level of 1930 and closed at 1921 dollars an ounce.
Gold was able to rise during the last four sessions in a limited positive correction to cover large short positions during the last period, and took advantage of the weak data issued by the US economy after the core personal consumption expenditures index declined to 4.6% from 4.7% in May.
And the United States issued data from the Institute of Industrial Supply for the month of June, and the index showed a contraction in the industrial sector by a value of 46, after the previous reading was at a value of 46.9, as a reading above the level of 50 indicates growth in the sector and below the level of 50 a contraction.
The US industrial sector recorded contraction for the eighth month in a row, which prompted gold to rise, as the weakness of US data reflects the inability of the US economy to bear more monetary tightening and raising interest rates by the Federal Reserve, and the industrial sector data warns of a possible economic recession with which demand increases. on gold as a safe haven.
On the other hand, the US dollar traded in a narrow range since the beginning of the week, which allowed gold to rise and correct after the significant decline it suffered and pushed it to record its lowest level in 3 months during the past week at $1892 an ounce.
The dollar index, which measures the performance of the federal currency against a basket of 6 major currencies, has been trading since the beginning of the week around the level of 102.60, after the weak data caused the dollar to lose its bullish momentum.
As for the yield on US government bonds, it rose near its highest level in nearly 4 months, with increasing expectations in the markets to raise US interest rates. The yield on 10-year bonds increased since the beginning of the week by 0.9%, to reach a high of 3.844%.
While the yield on two-year bonds, most affected by interest rate expectations, rose to the highest level since last March 9, at 4.963%.
The high yield on bonds negatively affects gold, as it raises the opportunity cost of the precious metal, because gold does not provide a return to its holders unlike bonds, but gold held firm despite the high yield on bonds in light of the market’s desire for a positive correction before the minutes of the Federal Bank’s meeting and employment sector data. America this week.
The markets are currently pricing in a 90% possibility that the Federal Reserve will raise interest rates by 25 basis points in the July meeting, which would lead to a hike in the interest rate to the range of 5.25% – 5.50%, and the markets also expect to start cutting rates after the end of the first quarter of 2024 .
This week, markets await the release of the US government jobs report for the month of June, which is expected to witness the addition of 224 thousand jobs, compared to the previous reading of 339 thousand jobs. It is also expected that the unemployment rate will decline to 3.6% from 3.7%.
Weak labor sector data may increase the chances of a rise in gold prices because it may reflect the beginning of the weakness of the US labor sector and its response to monetary tightening by the Central Bank, and therefore this may be translated in the markets to the economy not needing two interest rate hikes during the second half of the year, as indicated by the Federal Reserve. .
2023-07-04 10:30:00
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