2023-06-23 10:30:00
Islam Saeed wrote Friday, June 23, 2023 01:30 PM We publish the latest update on gold price Today, Friday, in the Egyptian market, a gram was recorded 21 karat gold The level of 2220 pounds per gram without any industrial addition, with the continued calm demand for gold in Egypt.
Gold prices today:
21 karat records 2220 pounds.
18 karat records 1894 pounds.
24 karat records 2526 pounds.
The gold pound is 17,680 pounds.
The global price of gold
Gold prices fell yesterday, Thursday, near their lowest levels in 3 months, which they recorded yesterday, in light of the negative impact of Federal Reserve Chairman Jerome Powell’s speech yesterday before Congress about raising interest rates, so that gold prices fell for four consecutive sessions and reached critical price areas.
Spot gold prices are trading – at the time of writing the report – at the level of $1926 an ounce, after declining by 0.3%. This comes after it fell yesterday and hit a 3-month low at $1919 an ounce.
So far, attempts are continuing by gold prices to break the support level at $1930 an ounce, after gold failed to find any support that pushes it to reverse its upward movement and move away from this critical price area.
The testimony of Jerome Powell, Chairman of the Federal Reserve, yesterday before Congress, was the main driver of the markets, and it came similar to his statements after the last meeting of the Federal Reserve, indicating that raising interest rates twice during the second half of the year is a good guess by the markets, and that the pace of interest hikes no longer matters now that Interest has reached its current levels and moderation in dealing with interest has become more appropriate.
The markets took two important conclusions from Powell’s testimony yesterday, the first is that he and other Fed officials agree that there should be more interest rate increases, and the second is that he expects rates to remain high for the remainder of this year.
Of course, this meaning had a negative impact on interest rates, because raising interest increases the opportunity cost of keeping gold, which does not provide a return to its holders, compared to bonds that provide a return that increases with an increase in interest.
Markets are now pricing interest with a 72% probability that the Bank will raise interest rates by 25 basis points during the next July meeting, but the markets are convinced that the Bank may not resort to raising interest again after the July meeting.
Today, the markets are waiting for the second part of Powell’s testimony before Congress, in addition to the weekly unemployment claims data on the US economy, which gained great importance as the Federal Reserve mainly relies on the employment sector data in making its decisions on interest rates.
On the other hand, the dollar did not witness much support in the markets holding the testimony of the Federal Reserve Chairman yesterday. On the contrary, the impact was negative on it, and it declined to trade near its lowest level in a month, according to the dollar index, which measures its performance against a basket of 6 major currencies.
Powell’s statements yesterday were a repetition of his statements on the day of the last Fed meeting, so there was no surprise in his speech regarding the dollar, which reflected negatively on his trading, especially since these statements were already priced in the markets.
The dollar index witnessed weak movements during today’s session, with little change near the closing level of yesterday’s session, after declining by 0.4% on Wednesday. It is noteworthy that the dollar’s decline contributed to the consolidation of gold significantly and it did not decline widely during yesterday’s session.
Yields on US government bonds continued to trade near high levels after yesterday’s talk by the Federal Reserve Chairman regarding the future of interest rates, which caused an increase in negative pressure on gold prices.
The yield on the 10-year bonds increased by 0.8%, at the level of 3.752%, while the yield on the two-year bonds, which are most affected by the change in interest rates, increased by 0.7%, at the level of 4.741%.
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