Islam Saeed Books
Monday, February 13, 2023 01:30 PM
We publish the latest update on gold prices today, Monday, with the continued calm in the movements of the gold price in the global stock market as well as the Egyptian market, and a gram of 21 carat gold, which is the best-selling in Egypt, recorded 1720 pounds per gram.
Gold prices today:
18 karat records 1474 pounds.
21 karat records 1720 pounds.
24 karat records 1965 pounds.
The gold pound records 13,760 pounds.
Gold prices fell on Monday against the backdrop of a rising dollar as investors fixed their positions ahead of US inflation data that may affect the Federal Reserve’s interest rate hike roadmap, according to the Gold Billion report, and the gold price fell 0.40% to $1,857 at the time of writing this report, while The dollar index, which measures the dollar’s strength against a basket of major currencies, rose 0.24%.
And the technical report of Gold Billion said that it views gold as a hedge against inflation, but the opportunity cost of holding it is higher when interest rates are raised to combat inflation, and the US dollar continues to advance and high treasury revenues put gold prices under pressure as expectations are challenged with a story long for inflation.
The dollar rose 0.16%, as a strong dollar made dollar-denominated bullion a less attractive bet for overseas buyers, and 10-year bond yields hovered near their highest level since Jan. 6.
Philadelphia Federal Reserve Chairman Patrick Harker said on Friday that he sees the Fed’s policy rate rising above 5% and continuing to do so for a while, and indicated the possibility of a rate cut in 2024. Market participants now expect the rate to reach Fed target interest rate to peak. 5% in July.
Cautious movements in gold prices may continue in the run-up to the release of US CPI data, as any risks of increased inflation could cause markets to reconsider the possibility of higher interest rates for a longer period.
Tuesday’s data is likely to show monthly consumer prices in the US rose 0.4% m/m in January
Russia increases the suffering of gold
In a first step of its kind, Russia decided to sell some of its gold to cover the budget deficit in January as income from oil and gas revenues declined, and the Russian Finance Ministry said earlier this week that the Russian budget deficit rose to 1.76 trillion rubles (25 billion US dollars), It was the largest January deficit in 25 years, contributed to by a 46% drop in tax revenues from oil and gas compared to a year ago. Spending also rose by 59%, driven by a surge in the war in Ukraine.
The decline in oil and gas revenues comes after the imposition of Western sanctions on Russian exports, and these include the ban imposed on most seaborne imports of crude and refined fuel by the European Union and the ceiling of the Group of Seven.
Russia’s Finance Ministry said in a separate statement that it sold 3.6 tons of gold from the Russian National Wealth Fund in January, and the ministry said the purpose of the sale was to help cover the deficit.
