Books – Islam Saeed Friday, September 22, 2023 01:30 PM
gold prices In Egypt, today, Friday, a slight increase was recorded during morning trading by about 5 pounds and a gram of gold 21 caliber– It is the best-selling in Egypt – 2220 pounds per gram.
Gold prices today:
24 karat records 2537 pounds.
21 caliber records 2220 pounds.
18 karat records 1903 pounds.
The gold pound is 17,760 pounds.
The US Federal Reserve surprised the markets with a number of statements and expectations regarding the future of interest rates, which had a significant impact on the global and local performance of gold in a way that may change the expectations of price movements during the coming period.
The Fed showed that interest rates will continue at their high levels for a longer period of time, and expectations indicated smaller interest cuts in 2024 compared to previous expectations, and the Fed Chairman warned that the recent rises in inflation rates and labor market flexibility give the Fed more room to maintain interest rates. High.
Jerome Powell also indicated the possibility of raising interest rates again at least this year, taking a much more stringent tone than market expectations, as he reduced the possibility of a recession in the United States in light of the continued flexibility of the American economy, a scenario that heralds a weakness in demand for… Gold as a safe haven.
But the prospect of US interest rates remaining high for longer is expected to be the main pressure on gold in the coming months, given that higher interest rates lead to a higher opportunity cost of investing in non-yielding assets such as gold.
As for the expectations of members of the Federal Reserve Bank, known as the Dot Plot, which is conducted every 3 months, it indicated an increase in interest rates by 5.6% during the year 2023, which heralds a new increase in interest rates during the remainder of the current year.
She pointed out that the interest rate will decline to 5.1% in 2024, which is equivalent to only two interest cuts during 2024, after the markets were pricing in a 4-fold rate cut during the next year.
The immediate impact of yesterday’s Federal Reserve meeting on the global gold price was positive and pushed prices to the level of $1,947 per ounce, which represents the areas of the psychological level of $1,950 per ounce, before returning to decline after the bank president’s statements were issued.
Now the picture has become very negative for the future of gold in the medium term in the coming months, with expectations of a new interest rate hike next November, in addition to the continuation of interest rates at their highest levels in more than 20 years until after mid-2024, as expectations indicate, according to Gold Billion’s vision.
Continuing interest rates at high levels is a negative scenario for gold due to the opportunity cost since gold does not provide a return to its holders.
In the short term, we may witness gold continuing to decline, reaching the levels of 1910, and then the psychological level of $1,900 per ounce, which will determine the fate of gold, whether it rebounds upward or expands its decline.
On the other hand, we find that the Federal Reserve reiterated in its statement that the bank’s decisions continue to depend on economic data, which gives gold an opportunity to fluctuate according to the data issued periodically, but in general there will still be negative pressure for the reasons mentioned above.
As for the local gold price, it showed a response to changes in global gold prices yesterday, rising to the highest level at 2250 pounds per gram, the most common 21 carat, before returning to decline at the end of the session and closing at the level of 2230 pounds per gram, recording an increase of 20 pounds per gram compared to the price. Yesterday’s session opened at 2210 pounds per gram.
Despite the rise that gold witnessed yesterday, when the session closed, it returned to the fluctuation zone between 2225 – 2180 pounds per 21 karat gram, causing the price to enter a state of fluctuation again due to weak cash liquidity and the current buying and selling movement in gold.
But yesterday’s movement made the area of 2250 pounds per gram a possible target for the price during the coming period, after which the main target for the rise was reached at 2300 – 2320 pounds per gram.
2023-09-22 10:30:00
#Gold #prices #today #Friday #September #Egypt #Youm7
