Despite an increase in global gold prices near all-time high on the backdrop of tensions between Israel and Iran, the precious metal fell by LE40 per gramme on Friday in Egypt, according to data from the General Division for Gold and Jewelry of the General Federation of Chambers of Commerce.
The 21-karat and 24-karatgoldsold for LE3,240and LE3,703, respectively, yesterday, traders said.
Globally, gold prices rose on Friday, on track for their fifth weekly gain, with investors gravitating towards safe-haven assets as political uncertainty in the Middle East overshadowed pressures from the prospect of higher-for-longer US interest rates.
Spot gold was up 0.4 per cent at US$2,388.49 per ounce. US gold futures edged 0.2 per cent higher to US$2,403.30 per ounce. Bullion rose 3 per cent so far this week.
The US announced new sanctions on Iran, targeting its unmanned aerial vehicle production after its attack on Israel.
Federal Reserve policymakers have rallied around the idea of holding borrowing costs where they are until probably far into the year, given slow and lumpy progress on inflation and a still-strong US economy.
The number of Americans filing new claims for unemployment benefits was unchanged at low levels last week, pointing to continued labour market strength.
Atlanta Federal Reserve Bank President Raphael Bostic said that if inflation progress stalls, central bankers would need to consider an interest rate hike.
Higher interest rates reduce the appeal of holding non-yielding gold.
Silver may have the power to reach the $30-per-ounce milestone after its 26 per cent surge in March-April on the back of gold‘s record run and copper’s strength, even though analysts say the metal is ripe for a technical correction.
Spot silver rose 0.7 per cent to $28.41 per ounce, platinum was up 0.6 per cent at $940.70, while palladium fell 0.6 per cent at $1,016.25.
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