Gold Prices Dip Despite Record-Breaking Year
Gold prices experienced a slight downturn on friday, December 27th, 2024, closing at $2,614.64 per ounce in spot transactions, a 0.8% decrease. US gold futures followed suit, falling 0.9% to $2,630.10 per ounce. This decline, attributed to rising US Treasury bond yields, comes after a remarkable year for the precious metal.
The market is currently anticipating the inauguration of President-elect Donald trump on January 20,2025,and the potential impact of his economic policies on interest rates set by the Federal Reserve. Uncertainty surrounding these policies is contributing to the current market volatility.
2024: A Year of Gold’s Ascent
Despite Friday’s dip, 2024 witnessed a notable surge in gold prices, with a remarkable 27% increase. The precious metal reached an all-time high of $2,790.15 on October 31st. This dramatic rise is largely attributed to a confluence of factors: escalating geopolitical tensions, particularly in the Middle East and Ukraine, coupled with relatively low inflation and reduced US interest rates.
While the Federal Reserve is expected to slow the pace of interest rate cuts in the coming year, many analysts remain bullish on gold’s prospects in 2025. The ongoing geopolitical instability and continued gold purchases by central banks worldwide are cited as key drivers for this optimism.
Moreover, analysts predict that President-elect Trump’s potential trade policies, including the imposition of tariffs, could spark trade wars, further bolstering gold’s appeal as a safe haven asset for investors seeking to protect their portfolios during times of economic uncertainty.
Gold Prices in Egypt
While the global market fluctuates, the impact is felt worldwide. According to the iSagha website (prices exclude craftsmanship and taxes),the average prices for gold in Egypt on December 27th,2024,were as follows:
- 21 Karat Gold: 3,735 Egyptian pounds per gram
- 18 Karat gold: 3,201.5 Egyptian pounds per gram
- 24 Karat Gold: 4,268.5 Egyptian pounds per gram
- 14 Karat Gold: 2,490 Egyptian pounds per gram
- Gold Pound: 29,880 Egyptian pounds
These figures provide a snapshot of the gold market’s reach and influence,demonstrating how global events impact even regional economies.
