Interest rates

Gold prices drop after Federal Reserve suggests raising interest rates

Gold prices were relatively stable in local markets in today’s trading, in light of a slight drop in the price per ounce on the global exchange, to record $1789.

Stable gold prices and lower prices per ounce are due to hints from the US Federal Reserve to continue tightening monetary policy to calm inflation and price pressures despite lower rates , according to the July consumer price report, released yesterday.

Gold’s losses pushed the dollar down 0.1% against its peers in other currencies.

Saeed Embabi, CEO of the Isagha platform for gold and jewelry trading, said gold prices were stable in local markets during today’s trading, 21-karat gold having registered 1050 EGP, and this is the same level as yesterday’s trading.

Embabi pointed out that gold prices saw a downward wave at the end of yesterday’s trading, which stood at around 7 EGP, while the total drop in gold prices since the start of trading of the week last Monday amounted to almost 29 EGP.

He added that 24-karat fetched EGP 1200, while 18-karat was estimated at EGP 900 and 14-karat fetched EGP 700. Finally, the gold pound recorded 8400 EGP.

Submitted by Israa Farhan