Egypt’s most popular 21-karat gold shed LE15 per gram, selling for LE3,105 on Friday. The 24-karat gold sold for LE3,548and LE3,050 per gram, traders said.
Meanwhile, the precious metal has been rising worldwide as investors are awaiting interest rate cuts this year.
Gold prices were headed for their third straight week of gains yesterday ahead of the much-awaited U.S. non-farm payrolls data, supported by strong safe-haven inflows and prospects for lower US interest rates this year.
Spot gold was up 0.1% at $2,291.79 per ounce, as of 1004 GMT, after hitting a record high of $2,305.04 on Thursday. Bullion has risen 2.6% so far this week.
US gold futures edged 0.1% higher to $2,311.
“The upward trajectory of gold prices over the past two months can be attributed to heightened geopolitical instability and anticipations of Federal Reserve rate cuts in the first half of the year,” said Ricardo Evangelista, senior analyst at ActivTrades.
The U.S. employment data could potentially either affirm the recent hawkish Fed stance, advocating for sustained higher rates, or alter that trajectory, reigniting expectations of an initial rate cut in June, Evangelista added.
Fed Chair Jerome Powell has reiterated that the US central bank has time to deliberate over its first rate cut, given the strength of the economy and recent high inflation readings.
Traders are currently pricing in an about 65% chance that the Fed will cut rates in June, according to the CME FedWatch tool. Lower interest rates reduce the opportunity cost of holding bullion.
“Gold trades in overbought territory,” said InProved precious metals trader Hugo Pascal, adding that he sees a high probability of a correction in the coming days, with $2,250 as the first target.
Elsewhere, spot silver fell 0.6% to $26.79 per ounce, after hitting its highest since June 2021 on Thursday. Platinum slipped 0.5% to $920.47. Both were on track for a weekly rise.
Palladium dipped 0.8% at $1,012.50.
