Gold prices stabilised in Egypt on Frriday with the 21-karat and 24-karatgoldsellingfor LE3,010and LE3,555, respectively, traders said.
The Gold and Jewelry Division of Egypt’s Federation of Chambers of Commerce said receipt of a second installment of the Ras El-Hekma deal would contribute to reducing gold prices on the local market.
Gold prices in Egypt are set by a number of factors, most notably the exchange rate as well as bullion world prices.
The precious metalposteda second consecutive weekly gain on Friday, after recent U.S. inflation data fuelled expectations that the Federal Reserve could cut interest rates twice this year, weighing on the dollar and Treasury yields.
Spot gold was up 0.4% at $2,384.86 per ounce. Bullion prices have gained 1% so far this week, having hit one-month highs in the last session. US gold futures rose 0.2% at $2,389.20.
“The upward bias for gold prices may remain, with the recent run in U.S. economic data offering room for the Fed to consider earlier rate cuts in 2024 while geopolitical tensions rock on,” said IG market strategist Yeap Jun Rong.
Data this week showing signs of cooling inflation offered the Fed good news, but policymakers haven’t openly shifted views yet about the timing of rate cuts investors are convinced will start this year.
Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
“Gold prices may correct lower as markets look to re‑establish the historical relationship between gold and the US dollar. It goes without saying that uncertainty will likely persist in gold markets in coming months,” Commonwealth Bank of Australia said in a note.
The dollar index was down 0.7% for the week so far, making gold less expensive for other currency holders.
On a technical basis, the path of least resistance for now seems to be pointed to the upside, said Ilya Spivak, head of global macro at Tastylive, adding that if the all-time high at around $2,431.29 is broken, an extension to $2,500 may follow.
Spot silver rose 0.2% to $29.68 per ounce after hitting an over three-year high in the previous session, and palladium dropped 0.6% to $987.84.
Platinum rose 0.8% to $1,065.83, after hitting its highest levels since May 12, 2023 on Thursday. The metal has gained over 7% so far for the week.
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