Gold prices in Egypt stabilized during today’s trading, Wednesday, February 10, 2021, despite the rise in global precious metal prices … Why?
Gold prices rose in global markets, hovering near the peak of a week, which they reached in the previous session today, as the attractiveness of the yellow metal increased as a hedge against inflation after the dollar fell and hopes for an American stimulus package increased.
Although the price of gold in Egypt is linked to the global stock exchanges, it contradicted it today in anticipation of the results of the statements of the President of the US Federal Reserve, the prices of the precious world, and the prices differ according to regions and types of caliber, and the manufacture of gold varies from one dealer to another, where the workmanship ranges between 30 and 60 pounds.
Gold prices in Egypt
The price of a gram of 24 carat gold in Egypt stabilized today, Wednesday, at 916.5 pounds.
The price of a gram of 21 carat gold (the most traded in Egypt) in today’s trading at 802 pounds, which is the same price yesterday.
The price of a gram of 18 carat gold in Egypt, during Wednesday’s trading, was about 687.5 pounds.
The price of a gram of 14 carat gold in Egypt was settled at 534.75 pounds, and the price of a gram of 12 carat gold was about 458.25 pounds.
And the price of an ounce in Egypt during today’s trading, Wednesday, was about $ 1836.
The price of the pound of gold in Egypt (8 grams of 21 carat) remained at 6416 pounds.
Global gold price recovery
Globally, gold rose on Wednesday, hovering near the peak of a week that it reached in the previous session, as the attractiveness of the yellow metal increased as a hedge against inflation after the dollar fell and hopes for a US stimulus package increased.
Gold rose in spot trading 0.3% to $ 1842.90 an ounce by 0716 GMT. Prices reached their highest levels since the second of February to $ 1848.40 on Tuesday.
And US gold futures gained 0.4% to $ 1845.30.
The dollar fell to near its lowest level in two weeks against its rivals.
“With US yields stabilizing, gold is moving inversely to the dollar. This is not a gold issue but rather a weak dollar,” said Jeffrey Haley, chief market analyst at Oanda.
A $ 1.9 trillion aid bill is expected to be proposed by US President Joe Biden to mitigate the fallout from the Coronavirus in Congress despite Republican opposition to the value.
“US inflation numbers represent a great danger,” Haley said, adding that a higher figure could cause a strong rise in the short term for the US dollar and push gold down. Consumer price index data for January is due out by 1330 GMT.
Higher inflation boosts gold, but it also raises treasury yields, which in turn increases its cost of the opportunity to acquire the yellow metal.
Investors are now awaiting a speech by US Federal Reserve Chairman Jerome Powell ahead of a hypothetical New York Economic Club event by 1900 GMT.
Gold is viewed as a hedge against inflation and a depreciating currency, likely stemming from broad-based stimulus.