Prices of the precious metal stabilized in Egypt on Friday with 24-karat and 21-karat gold selling for LE3,485and LE3,050 per gram respectively, traders said.
Gold prices eased in Egypt after floating the pound earlier this month. The 24-karat gold hovered above LE4,000 before falling below LE3,500 per gram.
The US dollar fell to LE46.7 on the local market, down from LE49.5 after currency float. The Central Bank of Egypt (CBE) floated the pound on March 6.
Globally, gold prices slipped due to a stronger dollar, but were set for a weekly gain as the U.S Federal Reserve’s decision to retain its interest rate-cut projection for 2024 bolstered bullion’s appeal.
Spot gold was down 0.7% at $2,166.47 per ounce. It has risen 0.5% so far this week, and is on track for a fourth weekly gain in five.
U.S. gold futures fell 0.8% to $2,168 per ounce.
The dollar advanced to a three-week high and was on track for a second weekly rise, making greenback-priced gold more expensive for other currency holders.
Gold prices rose to an all-time high on Thursday after Fed policymakers indicated they still expected to reduce rates by three-quarters of a percentage point by the end of 2024 despite recent high inflation readings.
Fed Chair Jerome Powell on Wednesday said the inflation readings had not changed the overall story of slowly easing U.S. price pressures.
Gold, which pays no interest, benefits when interest rates fall as this reduces the opportunity cost of holding bullion.
Fed funds futures traders are now pricing in a 74% probability that the Fed will begin cutting rates in June, according to the CME FedWatch Tool.
Spot silver dropped 1.2% to $24.46 per ounce, platinum fell 0.5% to $903.55 and palladium lost 1.2% to $997.94. All three were on track for a weekly fall.
