There seem to be major developments in gold price Globally and locally during the next week, after gold recorded high levels of 1895 dollars per ounce on the global stock exchange, as well as price movements in the Egyptian market to levels of 1850 pounds per gram.
Sameh Abdel Hakim, a member, said Gold DivisionIt is not possible to predict the near future of gold in the Egyptian market, indicating that the price of gold in the markets this week will be directly linked to the price of the dollar in the banking market, so any rise in the dollar will be matched by a rise in gold.
In the gold Bullion report, it revealed that global gold prices recorded their highest level in eight months, Thursday, January 12, 2023, as gold prices recorded an increase of 1.22% to $1899.45 during Thursday’s trading, and the precious metal continues to trade above the support level of $1880, and prices remain On its upward trajectory, with the continued decline in inflation in the largest economy in the world.
The report attributed the rise in global gold prices to the decline in inflation in the United States in 2022, as the Consumer Price Index (CPI) recorded its largest monthly decline since the beginning of the Corona virus pandemic, as the Consumer Price Index, which measures the cost of goods and services, decreased by 0.1. % for the month, in line with analyst estimates, and this equates to the largest monthly decline since April 2020.
He added that markets are watching the Fed’s moves closely as officials grapple with inflation, which is at its highest peak in 41 years, supported by supply chain problems, the war in Ukraine, and trillions in fiscal and monetary stimulus that have contributed to higher prices.
And gold Bullion indicated that the calm in inflation that opens the door to expectations of interest cuts, and then gold was affected and got more support and its prices rose to these levels.
The report concluded that although Susan Collins, President of the Federal Reserve Bank of Boston, stated that she tends to raise interest rates by a quarter of a percentage point at the next policy meeting of the central bank, the global gold market achieved these price hikes.
And the chief investment officer at Swiss Asia Capital said that the price of gold may jump in 2023 to $ 4,000 an ounce, and Kenner said that the increase in interest rates and fears related to recession remain on market volatility, which may push the price of gold at a level ranging between $ 2,500 and $ 4,000. an ounce sometime next year.
He added, in statements reported by international news agencies: There is a good chance that the gold market will witness a major movement, as the market will not only witness a rise of about 10% or 20%, but it will really achieve new heights, and he expected that many economies will witness a slight recession in the first quarter of 2023, which may push Central banks to slow the pace of monetary tightening and make gold more attractive, he also stressed the issue that the yellow metal is the only asset that every central bank owns.
According to data from the World Gold Council, central banks bought 400 tons of gold in the third quarter of 2022, which is more than double the record purchases recorded by banks in the same period of 2018 at 241 tons.