02:57 PM Friday, December 22, 2023
Written by: Sherine Salah:
Gold in Egypt completed its upward journey, returning to record historical levels again, after the rise in the price of the international ounce, in addition to the decision of the Central Bank of Egypt yesterday to stabilize interest rates, which increased the demand for gold as a safe haven.
According to a statement from the Gold Billion Gold Company, the most common price of 21 carat gold opened trading today, Friday, at the level of 3010 pounds per gram before continuing to rise, recording the highest historical level at 3030 pounds per gram, which is the price at which it is currently trading.
Analysis indicates three reasons that led to the increase in the price of gold: the rise in the price of the dollar on the black market, navigation tensions in the Red Sea, investor anxiety, and the rise in global gold prices.
On Thursday, the Central Bank decided to fix the interest rate on deposits and lending at the last meeting of the Monetary Policy Committee this year, 2023. It kept the overnight deposit and lending interest rates at 19.25% and 20.25%, respectively.
The dollar in the parallel market
The company said that the current rise in gold prices comes after the price of the dollar in the parallel market recorded a record level. This mainly contributes to the rise in gold, which is priced using the dollar in the parallel market.
According to what Masrawy reported from traders in the parallel market, the price of the dollar on the black market reached 52 pounds.
Gold also received support from the rise in the global price of an ounce of gold today before the release of important data on inflation in the United States of America.
Gold rises globally
Globally, gold prices rose to record their highest level in nearly 3 weeks during today’s session, supported by the decline in US dollar levels after the lower-than-expected growth data issued yesterday, while the markets today await the release of US inflation data, which will have a major impact on gold’s movement today. .
The spot gold price recorded an increase today, Friday, by 0.4%, to record the highest level in nearly 3 weeks at $2055 per ounce, breaching the $2040-$2050 per ounce resistance area that pushed gold to fluctuate below it for nearly two weeks, according to Gold Billion analysis.
Gold’s rise today comes after it closed yesterday above the level of $2040 per ounce at $2045, up by 0.7%, as the price was unable to achieve a daily close above this level two weeks ago.
Gold gained significant positive momentum during yesterday’s session after the GDP data for the United States during the third quarter of the year, which showed growth shrinking to 4.9% from the previous reading, which indicated growth of 5.2%.
These data contributed to increasing market expectations that the Federal Reserve will accelerate interest rate cuts, due to the emergence of a slowdown in various sectors of the US economy, bringing the odds of a rate cut in March to more than 70%.
As for the US dollar, it declined significantly yesterday after the weak US data, with the dollar index recording a decline of 0.6% and recording its lowest levels in 5 months, on its way to recording a weekly decline of 0.8%, which is a decline for the second week in a row.
The yield on US government bonds is trading near the lowest level in 5 months recorded this week at 3.381%, as the yield decreased this week by 1.3% to record a decline for the third week in a row.
Navigation tensions
It will also find support during the current period as a safe haven, in light of the current tensions in the Red Sea amid continuing attacks on ships, in addition to the beginning of the holidays during the next two weeks, which may prompt investors to end trading this week by placing their investments in the safe haven, whether gold or gold. Dollar.
This will increase volatility during today’s session, especially after the release of US inflation data, but closing gold prices this week above the level of $2050 per ounce will mean that gold will penetrate the region that it formed during the past four weeks between $2000 – $2050 per ounce, which increases… There are opportunities for gold prices to rise in the coming period.
2023-12-22 12:57:00
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