Gold prices today record 1910 pounds per gram of 21 karat


Islam Saeed Books

Tuesday, March 14, 2023 09:39 AM

rose Gold price in Egypt Today, Tuesday, the beginning of the day’s dealings, supported by the significant increase in ounce prices globally, supported by the demand for safe havens, in light of the current tensions in the financial markets due to the collapse of the Silicon Valley Bank, and the most common 21 carat gold recorded today’s rise, bringing the price of a gram to 1910 pounds, Because of the high global price of gold at $ 1900 an ounce.

Gold prices today

18 karat records 1640 pounds

21 carat price 1910 pounds

24 karat, its price is 2126 pounds

The gold pound is 15,280 pounds

Gold prices yesterday

Global gold prices opened the week’s trading, recording the highest level in 5 weeks, as demand for the precious metal increased as a safe haven after the collapse in the US banking sector last Friday following the collapse of Silicon Valley Bank, which had negative effects on all global financial markets, according to Gold’s technical report. Billion.

Spot gold prices opened trading today, Monday, on an upward price gap, to record the opening price of $1881.49 an ounce, before hitting a 5-week high of $1894.19 an ounce, to trade at the time of writing the report at the level of $1892.0 an ounce.

Last Friday, gold rose by 2%, following the announcement of the suspension of trading on the shares of Silicon Valley Bank, the collapse of US stock indices, and a sharp decline in the levels of the US dollar.

The dollar index, which measures the performance of the federal currency against a basket of 6 major currencies, fell today to its lowest level in 3 weeks, marking the fourth consecutive day of decline, according to gold Bullion.

Since the beginning of March, the price of an ounce rose globally by about $50, to compensate for 50% of the losses recorded by gold during the month of February, to come back today and knock on the doors of the resistance level of $1900 an ounce, and during the weekend in global markets on Saturday and Sunday, a new and important change occurred in expectations. The interest path by the Federal Reserve Bank, during the past week and after the testimony of Federal Reserve Governor Jerome Powell before the US Congress, expectations were to raise interest rates by 50 basis points during the bank’s meeting on March 21-22, provided that the rate hike cycle continues to reach levels of 6. %.

After the collapse of Silicon Valley, the market is now pricing in approximately 18% that the Fed will not raise rates at the March meeting, and another 82% forecast for a 25 basis point hike only. In contrast, the market was pricing in a 70% chance of a 50bp hike before the Silicon Valley collapse

It is worth noting that Goldman Sachs Corporation came out today with expectations that the Federal Reserve will not resort to raising interest rates at its March meeting due to a great deal of uncertainty in the markets, and that the bank will resort to interest increases by 25 basis points during its meetings in May, June and July, provided that The rate hike cycle ends at the 5.25% – 5.50% range.

Everyone now sees that the main reason behind the faltering of the huge bank was the rapid and aggressive interest rate hike by the Federal Reserve to fight inflation, as the bank resorted to raising the interest rate by 475 basis points in a record period since the interest rate was zero after the Corona pandemic.

Raising US interest rates pushed bond yields to record levels, which prompted the prices of these bonds to decline dramatically since the price of the bond is associated with an inverse relationship with the return on it, and US banks hold a large amount of government bonds according to the rules of the Federal Bank that it enacted after the banking sector crisis in 2008, and now, after the significant decline in the prices of these bonds, fears began of the scarcity of cash liquidity and the inability of banks to fulfill the obligations of depositors due to the poor yield of these bonds if they were sold in the debt markets.

Before the opening of global financial markets on Monday, the Federal Reserve and the Treasury Department took swift action that will restore calm and confidence in the banking sector and financial markets in general.

First, the Federal Reserve announced that it would provide additional funding to eligible depository institutions to help ensure that banks have the capacity to meet the needs of all depositors. This measure will enhance the ability of the banking system to protect deposits and ensure the continuous provision of funds and credit to the economy.

This will be done through the creation of a new Bank Term Financing Program (BTFP) to provide one-year loans to banks, savings societies, credit unions, and other eligible depository institutions that hold US Treasury securities, agency debt, mortgage-backed securities, and other eligible assets as collateral.

Also, the US Treasury Department agreed to provide up to $25 billion from the Exchange Stabilization Fund as support for the Bank Forward Financing Program (BTFP), in addition to the approval of both the US President and Treasury Secretary to enable the Federal Deposit Insurance Corporation (FDIC) to complete its decisions on each From Silicon Valley Bank and Signature Bank which also collapsed in a way that fully protected all insured and uninsured depositors.

Swift action by US policymakers will reduce stress across the financial system, support financial stability and minimize any impact on businesses, households, taxpayers and the broader economy.

The result was remarkably positive for the financial markets, as we witnessed a halt to the collapse of the financial markets with the beginning of the week’s trading, in addition to the rise in future contracts of US stock indices that trade before the opening of the American session today.

S&P500 futures rose by 1.30%, the Dow Jones futures rose by 0.88%, and the Nasdaq technology futures rose by 0.91% at the time of writing.

Positive expectations for gold with the decline in US bond yields

Since the end of last week, the US government bond markets witnessed significant declines in returns due to conflicting expectations regarding the future of US interest rates. The following chart shows a decline in yields on 10-year, 2-year, and 3-month bonds.

The 10-year bond yields, the most followed by the Federal Reserve, fell today by 1.35%, to record the lowest level in 3 weeks, by 3.645%. The return on short-term bonds (3 months) recorded 4.9361%.

On the other hand, gold prices witnessed an increase in light of the exit of investments from the bond markets in favor of safe haven investments, led by gold, as the following chart shows a positive intersection between gold prices and the yield on two-year bonds.

A leap in the performance of investment funds in gold

Trading in gold investment funds witnessed a big jump last Friday due to the Silicon Valley bank crisis, which led to a great risk aversion in the markets, which reflected positively on the performance of gold investment funds.

The SPDR Fund (GLD), which is the largest investment fund in commodities and gold, with assets amounting to $ 54.08 billion, recorded an increase last Friday by 1.1%, recording the highest level in 4 weeks.

The SPDR Investment Fund (GLD) recorded a total year-to-date return of 0.33%, despite the fact that global gold ETFs recorded the tenth consecutive month of net outflows in February, shedding an additional $1.7 billion, equivalent to 34 tons of gold, a decrease of 1%, according to the World Gold Council report.

On dollar investments after suffering from a scarcity of the dollar since the beginning of the Russian-Ukrainian war and the US Federal Reserve’s resort to raising interest rates during 2022, which caused the exit of up to 22 billion dollars from the Egyptian debt markets.

The current instability in the financial markets greatly supports gold, especially after rising inflation levels to levels we have not seen before, which increases the demand for gold as a hedge against inflation.






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