Today, Friday, gold prices in Egypt are witnessing a noticeable rise by about 30 pounds per gram, amid an increase in demand for the precious metal, as well as the movement of the price of an ounce of gold on the global stock exchange, to record a gram of 21 carat gold, which is the best-selling in Egypt 2020 pounds per gram for the first time..
Gold prices today
18 karat records 1731 pounds
21 karat records 2020 pounds
24 karat records 2309 pounds
The gold pound is 16,160 pounds
An ounce of gold is 1967 dollars
Gold prices in the global stock market
As for the global gold market, gold continued to rise for the third day in a row on its way to recording the largest weekly rise since mid-November, as it found support from many factors in the markets that prompted investors to invest in the precious metal as a safe haven, according to gold Bullion.
On the weekly level, gold prices have so far increased by 3.4%, achieving gains of more than $120 since the beginning of the Silicon Valley bank collapse crisis until the end of last week. On the other hand, the US dollar is suffering from negative pressure for the second day in a row, as the dollar index, which measures its performance against a basket of 6 major currencies, fell today by 0.4%, on its way to record a decline for the third week in a row..
Gold benefited greatly during this week as a result of the increasing demand of investors for the safe haven due to the crisis in the US banking sector, whose effects spread to the rest of the global markets, especially Europe, which witnessed a major crisis related to the famous Credit Suisse bank..
Despite this, decision makers were able to heal the wounds of the current banking crisis and take measures to end tension in financial markets. Large US banks, under the supervision of the authorities, pumped deposits worth $30 billion into First Republic Bank on Thursday to save the bank trapped in a widening banking crisis.. While Credit Suisse announced that it would borrow up to $54 billion from the Swiss National Bank to support liquidity..
On the other hand, data was issued from the US Federal Bank stating that US banks obtained emergency liquidity in a record manner during the past days since the collapse of the Silicon Valley and Signature banks. Compared to the previous record of $112 billion in the second half of 2008 during the global financial crisis..
In addition, US banks withdrew $11.9 billion from the term bank lending program established by the US Federal Reserve after the fall of the two banks at the end of last week..
Despite the huge figure obtained by US banks, the markets felt some relief because it reduces concerns about the exacerbation of the banking crisis and the fall of new victims..
Measures to support the banking sector weakened the dollar and did not affect gold
After announcing the crisis of the Swiss Credit Suisse Bank, we saw a rise in both the dollar and gold due to investors abandoning risk in favor of safe haven investments, then support measures began for the banking sector and affected banks, and this had an impact on the markets..
These measures contributed to supporting the US stock markets significantly during yesterday’s trading, as the index closed S&P500 The broader scale rose by 1.8%, its highest level in a week, and the Dow Jones index rose by 1.2%.%.
And the dollar fell again against other major currencies that are considered more risky than the dollar, which reflects the return of the desire for risk in the markets, albeit gradually. This was also evident in the decline in the yield on US government bonds, which is the main supporter of the dollar..
The yield on short-term US government bonds for 3-month delivery, which the dollar is affected by, fell today for the third consecutive session, after it fell yesterday to the level of 4.6637, near the lowest level of yield since mid-January..
The weak yield on bonds contributed to increasing the negative pressure on the dollar, but in return it had a positive effect on gold, which is priced in dollars, and therefore the decline in dollar levels increases the ability of holders of other foreign currencies to buy gold..
Yesterday, the European Central Bank raised interest rates as planned by 50 basis points to reach 3.50%, and the bank’s president indicated during her press conference after the bank that the European banking sector is flexible and bears pressure, which contributed to calming the markets somewhat..
The European Central’s adherence to raising interest rates as planned helped increase expectations that the US Federal Reserve will raise interest rates by 25 basis points during its meeting next week, as the markets price an almost 90% probability that the Fed will raise a quarter of a percentage point against a weak rate that supports the bank’s interest fixation..
Gold was also not negatively affected by the increasing expectations of a quarter-degree percentage hike in US interest rates, because this expectation has already been priced in the gold markets, so the focus now is on the tone of the Fed’s report and the comments of Bank Chairman Jerome Powell during the next week..