2023-06-14 10:21:00
Islam Saeed Books
Wednesday, June 14, 2023 01:21 PM
Domestic gold prices in Egypt continued to record a gradual decline, as a result of the decline in global gold prices, while the markets are awaiting the Federal Reserve meeting later in today’s session, and the most common 21 carat gold price recorded today, Wednesday, 2285 pounds per gram, to trade today at the lowest levels in nearly a month. While the price of the gold pound today recorded 18,280 pounds.
A technical report by Gold Billion revealed the occurrence of selling on gold in Egypt, with the continued decline in buying demand, amid the desire of many market participants to wait for more declines in gold before buying again, as some are looking to re-test the price bottom areas of 2200 pounds per gram.
The report added that the decline may continue with a number of gold holders resorting to selling in light of the current downturn, fearing that gold prices will continue to decline and that they will incur more losses, especially since the last period witnessed the entry of many speculators into the gold market wishing to achieve quick gains, taking advantage of the rising wave. The previous one, which reached a historical peak in gold at 2800 pounds per gram.
The technical report of Gold Billion indicated that the return of gold pricing linkage in Egypt with the global market contributed greatly to the stability of the market and its movement moderately without witnessing violent movements or huge speculations on the gold market, which prompted local prices to decline with the wave of global decline.
Today, the markets are awaiting the Federal Reserve’s meeting, which is expected to fix the interest rate without change, but the interest will be in the statements of the Federal Reserve Chairman and their expectations regarding the interest rate future during the second half of the year, according to Gold Billion analysis.
On the other hand, the initiatives taken by the concerned authorities during the recent period contributed to the stability of the gold markets and the convergence between supply and demand. For the Egyptian Customs Authority. This is in addition to the initiative to reduce the factory purchase of gold artifacts in order to reduce the demand for the purchase of bullion and gold coins, and to encourage the gold artifacts markets that suffer from a major recession during the past three months.
The report indicated that the first gold investment fund in Egypt helped achieve some stability, as it opened the door for a new class of investors to enter the gold markets without the need for actual ownership and without the need for large capital.
In addition to this, there has been an acceleration in the government’s moves in the issue of exiting from state-owned companies to provide dollar liquidity to fulfill its obligations. The last of these efforts was the willingness to implement the exit deal of the government represented in Telecom Egypt from Vodafone, amounting to 45%, or work to sell the Beni Suef power station for work. On achieving the government’s goal of raising $2 billion from the asset management program before the end of the current fiscal year on June 30.
The local gold markets ignored the inflation data that was issued this week, as the consumer price index rose in May by 32.7% on an annual basis, compared to the previous April reading of 30.6%, and it rose at the monthly level by 2.7% from 1.7%, according to data from the Central Agency for Public Mobilization. and statistics.
While the Central Bank of Egypt report showed that core inflation, which excludes a number of variable factors, rose in May by 40.3%, compared to 38.6% in April on an annual basis.
Despite the return of inflation to the rise last May due to the lack of supply of commodities and the rise in diesel prices, the gold market did not react to this data as the gradual selling of gold continued.
One of the important reasons that kept the negative pressure on gold prices in Egypt was the stability of the exchange rate of the pound against the dollar in official banks at 30.95 pounds per dollar, despite rumors and claims by international institutions of the need to reduce the exchange rate of the pound to achieve flexibility.
Global gold prices
Gold prices are witnessing a slight increase during trading today, after suffering three consecutive sessions of decline. US inflation data showed a decline in inflation, but it is close to expectations, so that the impact will be negative on gold markets, but today the markets are waiting for the most important event this week, which is the Federal Reserve meeting.
Spot gold prices rose today, Wednesday, by 0.3%, to trade at the time of writing the technical report for Gold Billion at the level of $1951 an ounce. This comes after gold fell since the beginning of the week by 0.6%, losing more than $10.
Despite these movements, gold trading remains within a defined range for three weeks, in light of the lack of clarity in the interest future by the Federal Bank, and everyone is now waiting for the bank’s meeting today, which will contribute significantly to determining the path of gold during the coming period.
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