Local gold prices stablised in local market on Friday as bullion eased worldwide. Egypt’s most popular 21-karat shed LE5 to LE3,440 per gramme yesterday, while the 24-karatgold sold for LE3,393per gramme, traders said.
The gold sovereign price stood at LE27,520.
Globally, gold prices eased yesterday, but were on track for a second straight month of gains on rising bets of a Federal Reserve rate cut next month, while traders awaited key U.S. inflation data for additional guidance.
Spot gold was down 0.3 per cent at $2,513.70 per ounce. The bullion is up about 3per cent for the month. U.S. gold futures fell 0.5 per cent to $2,547.10.
The “overall trend in gold remains bullish due to lower rates and geopolitical tensions,” said Peter Fung, head of dealing at Wing Fung Precious Metals.
“By year-end, prices should break $2,650 and in the medium to long term, expect it to go above $2,800 and maybe even $3,000.”
Currently, traders have fully priced in a U.S. rate cut next month, with a 66 per cent chance of a 25-basis-point reduction and a 34 per cent chance of a 50-bps cut, according to the CME FedWatch tool.
“The size of a potential September Fed cut could well be influenced by how tame or otherwise the core PCE Price Index is,” said Tim Waterer, chief market analyst, KCM Trade.
Data released showed U.S. weekly jobless claims fell slightly last week but re-employment opportunities for laid-off workers are becoming more scarce.
On the geopolitical front, the Israeli military and Palestinian militant group Hamas have agreed to three separate, zoned three-day pauses in fighting in the Gaza Strip to allow for polio vaccinations, a senior WHO official said. Tensions have otherwise been high with fears of a widening conflict.
Spot silver was flat at $29.44 per ounce, while palladium rose 0.1 per cent to $981.00. Both metals are on track for monthly gains. Platinum gained 0.8 per cent to $945.10 but was set for a third straight month of losses.
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